3/4/23, 12:51 PM Wipro holds back variable pay for June quarter for mid, senior-level employees: Read

loyees: Read the email to staff - Times of India

Wipro holds back variable pay for June

quarter for mid, senior-level employees:
Read the email to staff
TIMESOFINDIA.COM / Aug 18, 2022, 08:35 IST SHARE AA

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The rising global uncertainty seems to be hurting IT companies.
The country’s fourth largest IT services provider Wipro is
holding back the variable payouts of mid-to-senior level
employees for the June quarter. Wipro gives out variable pay
every quarter. As per the company's structure, these employees
belong to C bands and above (managers to C-suite level). The
company communicated the decision to employees in an
internal note sent a few days ago. Wipro cited lower margins as
the reason for the decision.

What the email says

"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, which will
continue as these are directed toward long-term value
building... Given our underperformance on margins this quarter,
our variable pay takes a hit," the email to employees said.

Employees who will be getting the variable pay

The company's employees in A & B Bands (freshers to team

leader levels) will receive 70% of the target variable pay
depending on their billability. Wipro gives the variable pay to
employees in the A & B Bands on the basis of the their billable
days for the quarter. For employees in the B and C and above
bands, the variable pay is linked to the company's financial
performance. The A & B Bands will reportedly receive the
reduced pay along with their August's salary. Sales incentives
for employees in the sales teams too have reportedly taken a

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3/4/23, 12:51 PM Wipro holds back variable pay for June quarter for mid, senior-level employees: Read the email to staff - Times of India

hit. The variable pay is based on three metrics: Revenue, order

book and margins.

What Wipro said

When TOI contacted Wipro on the matter, the company said,

"Hikes for our employees will be effective from September 1.
We have also completed the first cycle of quarterly progressions
effective July 1."

While announcing the company’s results in July, CFO Jatin Dalal

said, "We had mentioned at the beginning of last quarter that
our margins will remain lower as we are making conscious
investment in our business. And this is going to be there for a
few quarters." He added that the margins will improve from this
point as they have bottomed out.

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