India’s IT major, Wipro is holding back the variable payouts of Q1, June 30 ending quarter for mid to senior-level employees.
According to the people that are aware of the matter informed said that it is due to the pressure on operating margins. However, the freshers and the employees till the position of the team leaders will receive 70% of the target variable pay depending on their billability.
The information was shared with the employees through internal communication to employees.
The email to employees said, “We’ve seen some continued pressure on operating margins. Our Q1 margins were lower at 15% due to inefficiency in our talent supply chain, project margins, and our investments in talent, technology, and solutions during the quarter.”
“Given our underperformance on margins this quarter, our variable pay takes a hit”, it further explained.
Wipro explaining the matter said, “There is no change to our earlier statement on salary increase, and hikes for our employees will be effective from September 1, 2022.”
“We have also completed the first cycle of quarterly progressions effective July 1, 2022. We have no further comments on the quantum of variable pay”, the company added.
Bengaluru-based, IT major has added 15,000 employees in the first quarter of this fiscal with a total headcount of 258,574 employees on June 30, 2022. Which was 243,128 in the previous quarter, on March 31, 2022.
Wipro onboarded more than 10,000 freshers during April to June quarter.
The company has reported an attrition rate of 23.3 percent, slightly lower than the previous quarter’s 23.8 percent, but significantly higher than 15.5 percent during the corresponding quarter last year.
The total strength of the sales and customer support team in the Company stands at 17,806, which, interestingly, makes up for 6.8 percent of the total strength of the workforce.
In the last quarter of FY2021-22, Wipro hired 11,457 employees, of which, only 96 included sales and customer support staff.
