Software services firm Wipro has stated that it has not planned any change in the salary increase and that the pay hikes for its employees will be effective from September 1.
The IT major also informed that the first cycle of its quarterly promotions had been completed. This comes after reports stated that Wipro was pausing the variable payouts for its employees of certain bands for the April-June quarter.
“There is no change to our earlier statement on salary increase, and hikes for our employees will be effective from September 1, 2022. We have also completed the first cycle of quarterly progressions effective July 1, 2022,” Wipro told Mint.
However, the firm refrained from commenting on the variable pay for its employees. “We have no further comments on the quantum of variable pay,” the statement further read.
Media reports had earlier claimed that Wipro, one of the largest IT companies in the country, was holding its variable payouts for its mid and senior-level employees due to margin pressures.
The firm witnessed a low margin of 15% in the June end quarter against 18.8% in the same period last year.
Wipro had earlier said that new employee promotions were rolling out starting from July this year. The report added that the company would be offering quarterly promotions to its top performers up to mid-management level employees.
The company told the Mint that it would “roll out several promotions for its employees, starting July. Going forward, the company has decided to offer quarterly promotions to its top performers, up to the mid-management level. Wipro is expected to roll out hikes in September.”
Wipro gives variable pay to its employees every quarter. For its employees in bands A, B, and Rainbow, the variable pay depends on their quarterly billable days.
For those in bands B and C or above, the variable pay depends upon the firm’s financial parameters, reported Money Control.