In a surprising move, leading IT companies Wipro and HCL Tech have decided to postpone salary hikes for their employees and implement reductions in variable pay, despite surpassing market expectations with their first-quarter financial results.
According to a report from Business Today, HCL Tech has deferred the annual increment for senior employees until October, whereas it was traditionally implemented in the July-September quarter.
Prateek Agarwal, CFO of HCL Tech, expressed confidence in returning to the 18-19 percent growth range and revealed that pay hikes for junior employees would be decided in October, in accordance with company policies and performance outcomes.
Meanwhile, Wipro’s Chief Human Resource Officer, Saurabh Govil, announced that the variable pay for employees in the June quarter would be capped at 80 percent.
This decision comes alongside the company’s move to postpone salary hikes.
In contrast, Tata Consultancy Services (TCS) has taken a different approach by initiating annual salary increases for all employees, effective from April 1, 2023.
Wipro reported a 12 percent year-on-year increase in net profit for the June quarter, reaching Rs 2,870.1 crore. However, the company experienced a quarterly decline of 6.65 percent in profit.
Revenue stood at Rs 22,831 crore, reflecting a 6 percent growth on an annual basis, but a 1.5 percent decrease on a quarterly basis.
HCL Tech witnessed a 7.6 percent year-on-year rise in net profit for the June quarter, amounting to Rs 3,534 crore.
However, there was an 11 percent decline in profit on a quarterly basis. The company’s revenue showed a year-on-year increase of approximately 12 percent, reaching Rs 26,296 crore.
