Wipro may skip salary hikes for top performers with higher compensation

The move comes at a time when Wipro is dealing with a plethora of problems ranging from weak client spending to tough competition from larger rivals

Wipro may skip giving hikes to "top performers with higher compensation" in its largest business line in the upcoming round of salary revisions in December, news agency Reuters reported on Thursday citing an internal memo. 

The move comes at a time when the company is dealing with a plethora of problems ranging from weak client spending to tough competition from larger rivals. 

"We are doing a selective MSI (merit salary increases) rollout based on our business affordability," Nagendra Bandaru, the managing partner and president of the "Enterprise Futuring" business line told employees in an e-mail, according to Reuters.

Wipro will prioritise employees with lower compensation among those eligible for a raise, Bandaru highlighted, adding that "top performers with higher compensation may not be covered in this cycle".

Employees will receive their raises on December 1. Wipro Enterprise Futuring, one of four global business lines at the Bengaluru-based firm created as part of an organisational overhaul in April, deals with large-scale digital and tech transformation for companies.

India's $245 billion information technology industry, which had gained immensely from a pandemic-induced digital services boom, has been struggling in recent quarters as clients curtailed spending on discretionary projects amid inflationary pressures and global economic uncertainty.

Salary bills are the biggest contributor to expenses for IT companies, typically accounting for over 60 per cent.

Earlier this week, Wipro is mandating that all its employees globally work from office at least thrice a week from this month.  Companies have been reversing or modifying their "remote work" policies as Covid-19 pandemic-related restrictions wound down for reasons including better communication and collaboration among workers.

Last week, Infosys asked some employees to return to office 10 days a month, while industry leader TCS has asked employees to return to the office for five days a week.

Wipro has been encouraging employees to work from office thrice a week since May and about 55 per cent of the workforce are currently working from office at that frequency, a company spokesperson said. Wipro had 244,707 employees as of September 30.

The Bengaluru-based company confirmed the mandate will be effective November 15.

(With agency inputs)