- 18 Aug 2022
- ICICIdirect Research
Wipro holds back variable pay to mid to senior level staffWIPRO - 366 Change: 0.00 (0.00 %)
News: According to The Economic Times, Wipro in its internal communication has mentioned that it is holding back variable pay to its mid to senior staff while 70% of promised variable pay to freshers to team leaders would be paid along with their August 2022 salary.
View: We believe that it is in line with the company’s commentary on improvement of margins from Q2 onwards despite wage hike cycle coming in Q2. It could also mean that margins would have taken a hit, had this variable pay rolled out. The company also mentioned in its internal mail that once the performance improves, gains will be passed on to them suggesting variable pay is deferred but not dismissed. While temporary increase in attrition cannot be ruled out due to this move, we believe it would help to reduce inefficiency in the system as mentioned by the management.