/dq/media/agency_attachments/UPxQAOdkwhCk8EYzqyvs.png)
Follow Us/dq/media/post_banners/wp-content/uploads/2022/11/oie-2133219x63FeHhc.jpg)
Wipro, a Bengaluru-based IT giant, will begin implementing annual merit pay increases (MSI) for its staff on 1 December after deferring the rises by a quarter due to macroeconomic concerns and margin constraints. In the future weeks, these hikes will be evaluated individually. In an email to staff, Chief Human Resources Officer Saurabh Govil stated that the MSI will go into force on 1 December 2023 despite adverse global market conditions. Merit wage hikes would be evaluated based on income, skills, and performance. Wipro's outgoing Chief Financial Officer, Jatin Dalal, stated earlier that the compensation hike would take place in Q3 (October-December), noting that it was not planned for Q2 due to margin pressure. On the other hand, Tata Consultancy Services, India's largest IT firm, announced compensation increases for fiscal 2023, commencing April, with exceptional performers receiving 12-15% raises. These increases reduced their margin by 200 basis points.
Raises for fiscal year 2023 are still waiting
Even though raises for fiscal year 2023 are still waiting, Infosys began its next evaluation cycle last month. HCL Tech announced in July that senior employees will not receive yearly raises this fiscal year and that other employees' raises would be delayed by a quarter.
The $245 billion Indian IT business has been impacted by a slowdown in tech spending, resulting in deferred salary raises and lower variable pay for the 5.1 million workers it employs. Despite this, prominent Indian IT corporations have achieved substantial cost-cutting arrangements. Nonetheless, economists believe that these transactions are unlikely to have a significant impact on growth forecasts.
The 2019 earnings season will begin on Wednesday with TCS, followed by Infosys and HCLTech on Thursday. Wipro is set to release its financial results on 18 October, with a revenue fall of 2% to a 1% increase for the fiscal quarter ended 30 September compared to the previous year.