Chief Human Resources Officer Saurabh Govil conveyed in an email to employees that, despite challenging global market conditions, the MSI will take effect on December 1, 2023. A copy of the email which indicated that merit salary increases will be determined based on current compensation, skills, and performance has been seen by ET.
When ET reached out to the company for a response, no comment was received. Wipro’s outgoing Chief Financial Officer, Jatin Dalal, had previously mentioned plans to conduct the salary increase in Q3 (October-December), remarking that it wasn’t penciled in for Q2 due to margin pressure.
In contrast, Tata Consultancy Services, India’s largest IT firm, awarded salary hikes for fiscal 2023, effective April, with exceptional performers receiving 12-15%. These hikes had a 200-basis point impact on their margin.
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Infosys initiated its next appraisal cycle last month, even though fiscal year 2023 hikes are still pending. HCL Tech disclosed in July that senior employees would not receive annual increments for this fiscal year, and other staff would see their hikes deferred by a quarter.
The Indian IT industry, valued at $245 billion, has been affected by a slowdown in tech spending, leading to deferred salary hikes and reduced variable pay for the 5.1 million people it employs. Despite this, Indian major IT firms have secured significant cost optimization deals. Nevertheless, analysts suggest that these deals are unlikely to substantially impact growth guidance.
The upcoming earnings season will start with TCS on Wednesday, followed by Infosys and HCLTech on Thursday. Wipro is scheduled to announce its financial results on October 18 and had projected a revenue decline of 2% to a growth of 1% for the quarter ended September 30 compared to the previous year.