Software services company Wipro said it had not expected any changes in salary increases and that salary increases for its employees would be effective from September 1.
The computer science major also informed that the first cycle of its quarterly promotions has ended. It comes after reports said Wipro was suspending variable payments for its employees in certain bands for the April-June quarter.
“There is no change from our previous statement on the salary increase, and the increases for our employees will be effective from September 1, 2022. We have also completed the first cycle of quarterly increases from September 1, 2022. July 2022,” Wipro told Mint.
The company, however, refrained from commenting on the variable compensation of its employees. “We have no further comment on the amount of variable compensation,” the statement continued.
Media had previously claimed that Wipro, one of the nation’s largest IT companies, was keeping variable payouts for its mid- and upper-level employees on hold due to margin pressures.
The firm recorded a low margin of 15% during the last quarter of June against 18.8% in the same period last year.
Wipro previously said promotions for new hires were running from July this year. The report added that the company would offer quarterly promotions to its top performers through mid-level employees.
The company told the Mint that it “will launch several promotions for its employees starting in July. Going forward, the company has decided to offer quarterly promotions to its best employees, up to middle management level. Wipro is expected to roll out hikes in September.”
Wipro pays variable compensation to its employees each quarter. For its employees in Bands A, B and Rainbow, variable compensation depends on their quarterly billable days.
For those in Groups B and C or above, variable compensation depends on the company’s financial parameters, Money Control reported.