Wipro, another major player in the IT industry, has recently announced a delay in its annual wage hike cycle for the fiscal year. According to the Chief Financial Officer, Jatin Dalal, the last salary increase took place in September of the previous year, and the plan is to implement the hike sometime in the third quarter of this year.
In specific terms, Wipro has decided to postpone the salary hike of its employees to the 3rd quarter, shifting the schedule from the original plan of October-December this year instead of the previous year’s September timeframe. This decision aligns with the company’s strategy to carry out the pay raise later in the year rather than in the second quarter.
On the attrition front, Wipro has seen a decline in voluntary attrition rates, which reached an 8-quarter low in Q1’24. The attrition volume stood at 17.3 percent, down from 19.4 percent in the previous quarter. Notably, the calculation excludes DOP (Departure of Personnel) and is based on a quarterly annualized basis for IT Services.
During the June quarter, the total employee count at Wipro decreased by 8,812 individuals, resulting in a headcount of 249,758 at the end of the first quarter, compared to 258,570 at the end of the previous fiscal year, FY23.
Interestingly, similar actions are being taken by other Indian IT services companies. For instance, HCLTech, a technology company, has also deferred salary hikes for its employees by one quarter. Chief People Officer Ramachandran Sundararajan stated that the company typically announces pay reviews during this time of the year. However, considering recent hiring and compensation reviews, they have made the decision to defer their annual reviews by a quarter.
Earlier, Infosys, another prominent IT firm, had deferred the salary hikes for its employees below the senior management level, which it usually rolled out from April. The pay hikes for employees below the senior management level typically occur in the June quarter, but employees have not yet received any communication from the company regarding this matter.
On the other hand, TCS (Tata Consultancy Services) has implemented an annual salary increase effective from April 1st. The company offered a 12-15% raise for exceptional performers in the latest annual compensation review and also initiated the promotions cycle.
In conclusion, the IT industry in India is experiencing a shift in the salary hike schedules due to various factors, with Wipro, HCLTech, and Infosys being among the companies making strategic adjustments to their annual review timelines. These decisions come amidst the evolving dynamics of the sector and its workforce.
