IT major Infosys increased its average variable pay to more than 80% for the June quarter of FY24, thanking Infoscions for their unwavering contribution and unrelenting commitment. Similarly, Wipro also rolled out more than 81% of an average variable for the June quarter to its employees.
The staff of both Bengaluru-based businesses have been informed of this. Quarterly performance bonuses will be paid to both firms’ employees in August salaries. As of the June quarter of FY24, both companies had more than 5,80,000 employees.
“Variable pay is linked to business metrics for all employees. As we have done in the past, we will be awarding our employees on pre-set performance criteria metrics. We will pay out above 81% of variable pay for most of our colleagues,” a Wipro spokesperson said.
For the March quarter of FY23, Infosys had reduced its variable pay to 60%, citing global macro-economic headwinds, and Wipro paid 80% on average.
The eligible employees will receive the amount based on their individual and business units’ performance. This development comes days after both companies gave muted guidance amid a challenging and uncertain macroeconomic environment.
While Infosys revised down its annual revenue guidance from 4%-7% to 1%-3.5%, Wipro guided for a muted revenue growth of -2% to 1% in constant currency terms for the July – September quarter.
While not giving a straight answer, Infosys said during the earnings call that it is actively considering the compensation and hike process for its employees, whereas Wipro deferred salary hikes for their employees from the second to the third quarter.
Wipro’s utilisation has improved to 83.7% in the just concluded quarter. The company saw its total headcount fall by 8,812 in the June quarter. Attrition also fell to 17.3% in the June ending quarter from 19.4% in the March quarter of FY23.
Infosys’ utilisation ratio (including trainees) jumped to 78.9% in June quarter from 76.9% in the preceding quarter. And its attrition fell to 17.3% in the June quarter from 20.9% in the preceding quarter.