80% of Wipro's employees will get 87% variable pay for the third quarter

Wipro has proposed to pay 87 per cent of the variable pay component to over 80 per cent of its workforce, according to a communication in the company's internal email. The payout is for employees in bands A to B3 for the third quarter and covers freshers and team leaders, as reported in The Economic Times (ET).

 

For everybody else in the company, the payout will be based on the respective unit's achievement of its target, said the report, referring to the internal email.

 

The company awarded 100 per cent variable pay for these employees last quarter, the report added.

 

"To drive our common goals, our business-linked variable pay is based on a quarter's performance against revenue, bookings, and operating margin," the report said, quoting the email.

 

The Bengaluru-based IT services firm has achieved 0.6 per cent growth in sequential revenue, 23.7 per cent sequential increase in bookings, and an improvement in operating margins at 16.3 per cent, which is "still below (Wipro's) planned target," it said.

 

The report added that the variable pay would be credited along with February's payroll. Furthermore, to be eligible for the payout, billable and digital operations and platforms (DOP), employees must have a minimum utilisation level of 50 per cent.

 

Last month, India's largest IT firm, Tata Consultancy Services (TCS), paid 100 per cent variable pay to 70 per cent of its employees for the third quarter, the report said.