Wipro to roll out 87% variable pay to employees in Q3FY23

Indian IT major Wipro will be rolling out 87 per cent variable to employees in bands A to B3 for the December-ended quarter of FY 2022-23, the company announced to its employees in an internal email, Business Today has learned.

The email noted that the variable pay of employees would depend on the company’s performance as well as the performance of the business unit in which employees are working.

The email read, “To drive our common goals, our business-linked variable pay is based on a quarter’s performance against revenue, bookings, and operating margin.”

The variable pay for the December-ended quarter would be rolled out with February month’s salary, the internal communication highlighted.

As per regulatory filings, the company’s consolidated revenue for Q3 FY2022-23 went up 14.3 per cent YoY to Rs 23,229 crore. Furthermore, the top line increased 3 per cent and the bottom line increased by a sharp 15 per cent.

Wipro’s revenue from IT services shot up 10.4 per cent YoY and the operating margin calculated as earnings before interest and taxes (EBIT) improved 120 basis points sequentially to 16.3 per cent.

In the earnings call, CEO and Managing Director Thierry Delaporte said, “We are continuing to gain market share as a result of deepening client relationships and higher win rates. Clients are turning to us to help them manage an evolving macro environment and balance their transformation goals with cost optimization.”

It is worth noting that the company had awarded 100 per cent variable pay to the A to B3 band of employees in the preceding quarter.

Furthermore, rival IT firm TCS rolled out 100 per cent variable pay for 70 per cent of its employees in the December-ended quarter.

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