Wipro Holds Back Employee Variable Pay As It Faces Margins Pressure

Wipro Limited has opted to hold onto the variable pay for some of its employees as the company faces the heat to meet margin goals. The cutting of variable pay has been mostly for company’s mid and senior-level employees.

In an e-mail to its senior employees and the C band, Wipro said that it is holding back the variable pay. Meanwhile, the A and B band employees would get 70 per cent of the variable payout.

The company in the e-mail said that Wipro’s underperformance on margins during this quarter has affected the variable pay. It also stated that the incentives of the sales team are also impacted due to this.

But the cuts in variable pay will not affect the company’s earlier announcement on salary increase and hikes of employees. These will go forward from September 1, 2022.

Wipro reported that its operating margin in the IT services segment decreased by 200 basis points to 15 per cent QoQ.