Two of the largest Indian information technology (IT) services companies, Infosys and Wipro, have announced annual wage increases this year, the quantum of which are more in line with the industry average. While Infosys said it would give an average rise of eight per cent to its employees in India, Wipro has announced an increment of six-eight per cent.
Infosys usually gives rises to its employees with effect from April every year. In FY13, the company deferred the decision citing tough global economic environment. However, it later revisited the decision and announced a wage hike in October. This year (FY14), though the company management had indicated to restructure the employee compensation with an aim of increasing the fixed component in the salary, it was non-committal on giving a rise.
Apart from India, employees located in other geographies, who were not given wage hike in February this year, will be covered in this cycle, Infosys said in a statement today. They would be given an increase of about three per cent in average. The increments will be effective July 1. However, for its global sales force, the changes will come into effect from May 1.
On the other hand, during its earnings press conference in April this year, Wipro had said it would give the annual wage hike in June even though the quantum of raise would be decided subsequently. While it has decided to give a salary increase in the range of six-eight per cent, it will be more for high performers, the company said today.
“In line with the practice of rewarding high performers, Wipro has awarded double-digit hikes for these employees," a company statement said. The average wage hike for its onshore employees would be in the range of two-three per cent, it added.
Among the large Indian IT companies, Tata Consultancy Services was the first to effect a rise effective April 1. The company had given an average riseof seven per cent to its Indian employees and between four and six per cent for those based in other developing countries. Employees located in onshore locations were given a hike in the range of two-four per cent.
Noida-based HCL Technologies Ltd, which follows a June-July accounting period, usually gives annual salary increase with effect from
Last year, HCL had given average hike of eight per cent to its offshore employees and between two-four per cent to its onshore employees.