Wipro will begin rolling out salary hikes for its employees from March 1, ending a delay that has stretched to over a year since the last increment cycle in September 2024, according to people aware of the development.
Sources said that the company has informed employees through an internal communication about the decision, though the percentage increase has not yet been disclosed. Wipro did respond to queries till the time of going to the press.
Strategic Timing
During its third-quarter earnings call in January, Chief Human Resources Officer Saurabh Govil had said the management was still deliberating on the timing of hikes and that a decision would be taken after the World Economic Forum meeting in Davos. He had also indicated that the company was close to taking a call.
The move comes at a time when IT services companies have remained cautious on wage increases amid a weak demand environment, geopolitical uncertainties and pressure on client spending. Several large peers deferred increments in the previous fiscal, opting for staggered or moderated payouts.
Wipro reported a 5.5% year-on-year increase in revenue to Rs 23,555.8 crore for the third quarter, but net profit declined 7% to Rs 3,145 crore. The company issued cautious guidance for the following quarter, reflecting continued uncertainty in the operating environment.
Rivals have followed varied approaches to compensation over the past year. Tata Consultancy Services rolled out hikes ranging from 2% to 8% for about 80% of its workforce from September, after pushing back its cycle from April. Infosys implemented increments in two phases, with most employees receiving increases of 5% to 8%, and higher payouts for top performers. Cognizant also delayed hikes before implementing them from November.
Variable Pay vs. Base Hikes
While base salary hikes were deferred, Wipro continued to pay out variable compensation. The company announced a 100% payout of quarterly variable pay for the quarter ended December 31, 2025, to be disbursed with February salaries, following payouts of over 90% in the first two quarters as well.