HomeBUSINESSWipro holds back variable pay of employees: Report

Wipro holds back variable pay of employees: Report


Wipro has held back variable pay of employees, according to a report by PTI news agency. Managers to the C-suite Level of the company will not get any portion of variable pay. Whereas, employee grades between freshers to team leaders will get 70% of the total variable pay, the agency said.

Inefficiency in talent supply, pressure on margins, and inefficiency in investment in technology are some of the reasons the company has not released variable pay.

PTI agency, citing sources said, the company has informed employees in an email about the cut in variable pay.

“The company in the email has attributed lower margins in the first quarter due to inefficiency in its talent supply chain, project margins and investment in talent, technology, and solution during the quarter,” according to the PTI news agency’s sources.

Recently,  the Bengaluru-based IT firm told Livemint that it will disburse hikes in September and has completed its first cycle of quarterly promotions.

“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,” Wipro said in an email response to Mint.

Wipro on Wednesday reported about a 21% year-on-year fall in its consolidated net profit to 2,563.6 crore for the Q1 ended June 2022.

The profit for the period (attributable to the equity holders of the company) stood at 3,242.6 crore in the year-ago period.

The net profit was down 20.6% on a year-on-year basis.

Wipro’s operating margin in the IT services segment decreased by 200 basis points to 15% quarter-on-quarter. The operating margin was 17.7% in the January-March 2022 period and 18.8% a year ago.

Wipro had 2,58,574 employees as of June 30, 2022.

The company reported a marginally lower attrition rate of 23.3% in the April-June 2022 quarter (on a trailing twelve-month basis) from 23.8% recorded in the previous quarter.

Catch all the Corporate news and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates & Live Business News.


Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.


Source link


Most Popular

Recent Comments