India’s third-largest IT services exporter, Wipro, has announced a 7% salary hike for its India employees effective June, 2015, which is almost the same level as last year’s. Onsite personnel will receive a raise of 2%.
Wipro HR global head Saurabh Govil said, “In line with industry standards, Wipro has announced a salary increase for eligible employees, effective June 1, 2015. The average salary hike would be 7% for offshore employees and 2% for onsite employees, respectively, with high performers being rewarded with substantially higher increases in their compensation.”
Wipro, which has a total headcount of 1,58,217, has also increased the fixed pay component for employees at junior and mid-management levels. The move will have a big impact as the segment is Wipro’s largest.
The salary increase at Wipro mirrors the trend witnessed in the $146-billion Indian technology industry, with single-digit hikes becoming the norm. Infosys has announced an average 6.5% hike for FY16 while TCS has given a compensation increase of around 8%.
In an earlier interaction with FE, Govil had said, “We will differentiate and pay more to our high performers. I would suppose that high performers can look at a double-digit wage hike. On wages for entry-level campus recruits, there is no plan to change that.”
The Indian IT industry, which employs close to 3 million people, has seen a sharp differentiation in salary structure with better performers getting a hike running into double digits. Infosys had said it would give its higher performers a hike of 9.5%.
However, salaries for entry-level campus recruits have remained stagnant for the last three to four years.
The industry earlier saw average hikes of 15-20%, but since 2008 the hikes have seen a correction.Today, the highest demand is for professionals with niche or advanced technology skills — they still command a premium.