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EXCLUSIVE: Wipro rolls out mid to high single-digit salary hike

EXCLUSIVE: Wipro rolls out mid to high single-digit salary hike

EXCLUSIVE: Wipro rolls out mid to high single-digit salary hike
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By Rukmini Rao  Jun 6, 2018 6:14:30 AM IST (Updated)

Indian software services exporter Wipro gave a 6-7% average increment to its over 1.63 lakh workforce beginning June, multiple sources told CNBC-TV18 on Tuesday.

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According to the sources, the average increment for onsite employees have been around 3-5% while off-shore employees have received salary hikes between 6-8%.
The company also announced "substantially higher" increments for performers with better digital and technological skills compared to others, according to the sources.
“Wipro has announced salary hikes for eligible employees, effective June 1, 2018. On an average, the increments are in the high single digits for offshore employees while increments for onsite employees are in the low single digits. Top performers and those working on future focused niche technologies and domains have been rewarded with substantially higher increases,” the Bengaluru-based company told CNBC TV-18.
Earlier this year, Infosys announced increments in the range of mid- single digits to high- single digits for both onsite and offshore employees starting April 1, just like larger rival Tata Consultancy Services (TCS).
Wipro also said some of its employees may not receive increments this year based on individual performances, a trend similar to last year.
"The hike is similar to what we got last year, but the pressure is a lot more compared to couple of years," a Wipro employee based in Bengaluru campus who did not wished to be identified told CNBC-TV18.
Indian software firms are increasingly focused on upskilling their employees to help them stay relevant.
When it comes to giving salary hikes, a key distinguishing factor remains employees performance and their overall contribution to the growth of the company as technology firms cut costs to drive profit margins.
" ...as the salary increases this year is expensive for the company, we need to ensure we drive cost productivity to make up for the MSI (Merit Salary Increase) and create head room for next year," Chief Executive Officer Abid Ali Nemmuchwala said in a letter to employees.
With nearly one-third of the company’s revenues now coming from the digital business, Nemmuchwala appealed to employees to up-skill themselves not just to stay relevant but also to grow in the digital age.
Unlike peers such as Infosys and TCS, which finished fiscal 2018 with a dollar term revenue growth rate of 7.2% and 8.6% respectively, Wipro struggled with a 4.6% growth largely due to client specific issues and a longer than anticipated turnaround in the energy sector.
While Wipro and Infosys shared a similar digit of 16.6% on the attrition front for fiscal 2018, TCS has been by far the best retainer of IT talent with 11.0% attrition rate.
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