Wipro announces 8% salary hikes for top performing employees in 2024

Wipro's salary this year improves upon the average 6% hike given to top performers at the IT firm last year

Indian IT major Wipro Ltd is set to roll out salary hikes for employees starting September 2024, with top performers expected to receive an average increase of 8 per cent, according to a report by Mint. This marks an improvement on last year’s average increment of around 6 per cent, with most of the company’s offshore employees benefitting from the new salary structure.

The salary hikes come amid growing concerns over a global slowdown in the technology sector, as clients reduce IT spending due to economic uncertainties. Wipro is the second major Indian IT company to announce salary increases, following Tata Consultancy Services, which recently awarded top performers double-digit raises, while the rest received a 4.5-7 per cent increase starting from April 1, 2024.

 

Around 75 per cent of Wipro’s 200,000 offshore employees — those working away from client locations — will see salary hikes averaging 8 per cent, while those stationed at client sites are expected to receive a 3 per cent increase. The adjustments will be effective from September 1, 2024, according to an internal email sent by Saurabh Govil, Wipro’s chief human resources officer, on August 29, 2024, as cited by Mint. Govil assured employees that revised compensations would be reflected in their October payroll, along with arrears for September.

Wipro on salary hikes

Wipro, however, has not confirmed these reports. In a statement the company said, "Wipro will be awarding Merit Salary Increase (MSI) effective September 1, 2024, to our employees. This decision reaffirms our commitment to recognise and reward employee contributions."

The company added that they were still in the process of finalising the increments and that exact hike amounts were not yet confirmed.

"We are in the process of defining eligibility guidelines and performance-based increases. The revised compensations will reflect from the October payroll along with the arrears," the company said.

India's IT industry

India’s IT industry, valued at $254 billion, experienced a growth rate of just 3.8 per cent last year — the slowest in its recent history. In light of this, Wipro’s decision to offer hikes, especially better than last year’s, can be seen as a step towards boosting employee morale and ensuring retention.

The salary increase also follows Wipro’s recent leadership change, with Srinivas Pallia taking over as CEO in April 2024, replacing Thierry Delaporte. Pallia has emphasised the importance of guiding Wipro through a challenging period towards sustained growth.

While Wipro and TCS have both announced salary hikes, other major players like Infosys and HCL Tech have yet to confirm their plans. According to industry experts, IT services companies are treading cautiously, waiting for more clarity on the global macroeconomic situation before finalising the timeline and quantum of their salary adjustments.

Wipro’s employee costs for the year ending March 2024 amounted to Rs 549 billion ($6.6 billion), accounting for 61 per cent of its full-year revenue of $10.8 billion. The company is also expected to ramp up hiring, particularly from campuses, after a gap year, targeting 10,000 freshers by March 2025.