Wipro cancels variable pay for many employees and takes a stern view of workers not achieving targets
Posted Date: 18th August 2022
Relating to which Act: The Minimum Wages Act 1948, The Payment of Wages Act 1936, Payment of Bonus Act 1965, Payment of Gratuity Act 1972, Code on Wages 2020,
Type: IT News Item
Pertains to employers and employees
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Subject: Wipro cancels variable pay for many employees, takes a stern view of workers not achieving targets
For greater details, appended below is the complete news item
Wipro cancels variable pay for many employees and takes a stern view of workers not achieving targets
Wipro has decided to hold back variable pay for its mid and senior-level employees while fresher and junior-level staff will get variable pay after a 30 percent cut.
HIGHLIGHTS
- Wipro has decided to hold back variable pay for its mid and senior-level employees.
- Wipro sent an email to its C band and senior employees.
- Fresher and junior-level staff will get variable pay after a 30 percent cut.
One of the biggest IT companies in the country, Wipro, has decided to hold back variable pay for its mid and senior-level employees while fresher and junior-level staff will get variable pay after a 30 percent cut. In an email, the company said that the variable pay cut is happening due to operating margin pressure.
It is said that Wipro sent an email to its C band and senior employees stating that they would not receive any variable payouts. The email, though, mentioned that employees in A and B bands would receive 70 percent of the target payout. And these employees will get their pay cut by the end of August.
The company said that the decision to hold back variable pay comes after teams failed to achieve their assigned target. The email stated that the Q1 margins were lower at 15 percent due to inefficiency in talent supply chains, project margins, and investments in talent technology and solutions. “Given our underperformance on margins this quarter, our variable pay (including sales incentives) takes a hit,” Wipro noted in the email to employees,
Stating the same reason, the company said that the incentives for employees in the sales team have also been impacted.
In the same email, the IT company also stated that there will be no change in the salary hike and the increment will be effective from September 1. As per a report coming from The Times of India, Wipro said that “hikes for our employees will be effective from September 1. We have also completed the first cycle of quarterly progressions effective July 1.”
tech companies, in general, are going through a tough time. Big tech firms like Google and Apple are planning layoffs. While Google is warning employees to work harder, Apple has already laid off 100 employees. Some of the other big tech companies like Netflix, Microsoft, and more have also fired hundreds of employees as a result of economic downtime.