By Ankita Garg: Infosys and Wipro have reportedly conducted layoffs in the recent past and taken a few other cost cutting measures. It seems that IT companies are now also slashing the variable pay of employees. Reports claim that both Infosys and Wipro will be giving reduced variable pay to workers, whereas TCS is promising to offer a 100 percent amount to its employees. Here is everything you need to know.
Infosys and Wipro cutting average variable pay of employees
-The IT companies like Wipro have reportedly informed their employees that it will release only 80.25 percent variable pay to employees. “Given our overall performance across Wipro, and with the company multiplier at 1, the variable pay for Q4 FY 2023 is 80.25 percent for employees whose payout is linked to Wipro’s overall financial performance,” the company said.
-The reason behind not paying full variable pay is not known, but the move could be attributed to the decline in revenue growth. There are reports claiming that Wipro witnessed a decline of 0.6 percent in revenue for Q4 FY23. It is being said that the company had expected a drop of up to 3 per cent in the April-June quarter on basis of its analysis.
-Similarly, another IT major, Infosys, is also planning to offer reduced variable pay. A report from TOI claimed that this firm will give an average variable payout of 60 percent to its employees for the quarter that ended March.
-The cited source claims that the company will start sending an email for variable pay to employees on May 19. In addition to this, the source reported that the variable pay will be paid to the workers along with their May salary.
“While FY23 was a year of strong performance overall, the quarter that went by was impacted by a volatile market and unforeseen events. We need to rally as a group and remain committed to navigating the changing business landscape,” Infosys said internally.
-While the employees who are working for these companies might not be happy with the variable pay, those who work at TCS have received good news as the company is giving 100 per cent variable pay to employees up to the C2 band, according to an email sent internally. For those who are unaware, the C2 band includes those who mostly come in the lower hierarchy of the company.
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