IT services major Wipro has deferred a decision on salary increments for the current financial year, with its Chief Human Resources Officer Saurabh Govil stating that the company is yet to finalise its position amid a challenging macroeconomic environment.
Speaking at Wipro’s Q1 FY26 earnings conference, Govil said, “We haven’t decided on the hikes yet. It is too early. The macro environment, the current demand, supply situation – all of this will play in factors. Closer to the date, we will take a call and communicate.”
His comments were made during the company’s post-results analyst and media briefing held earlier this week.
Govil’s remarks come at a time when India’s IT sector is witnessing increasing caution around compensation decisions, amid global business headwinds and restrained technology spending. Wipro had issued wage hikes ahead of schedule in September 2023, following a previous round in December 2022, as Govil had noted in Wipro’s Q4 FY25 earnings commentary in April.
The current lack of clarity reflects the prevailing uncertainty across global markets, with many clients tightening tech budgets due to ongoing geopolitical tensions, inflationary pressures, and trade policies.
Last week, Tata Consultancy Services (TCS) offered similar commentary, stating that its annual salary increases—typically rolled out from April 1—would be deferred by at least a quarter, pending better visibility on client demand and business sentiment.
Wipro’s conservative stance on compensation comes despite reporting a solid Q1 FY26 performance, with the company posting an 11% year-on-year rise in consolidated net profit, which stood at ₹3,330 crore, beating Bloomberg’s analyst estimate of ₹3,249 crore.
Revenue from operations rose slightly to ₹22,135 crore, marginally ahead of expectations. However, in constant currency terms, revenue was down 2.3% year-on-year, underscoring the broader slowdown in discretionary IT spending.
Wipro maintained a guarded revenue outlook for the second quarter of FY26, forecasting growth between -1% to +1%, reflecting continued uncertainty in client decision-making cycles.
On profitability, the company’s operating margin improved 80 basis points year-on-year to 17.3%, although there was a 20 basis point sequential decline, suggesting ongoing cost optimisation efforts.
From a workforce standpoint, Wipro reported a net reduction of 114 employees during Q1 FY26, with its total headcount standing at 233,232 as of the end of June. The company is currently reassessing its lateral and campus hiring models, according to disclosures in the earnings release.
The company also reported a slight uptick in attrition, with the last-twelve-month (LTM) rate rising to 15.1%, compared to 15.0% in Q4 FY25.
While Wipro has not announced a formal hiring freeze, the subdued hiring and cautious commentary around increments indicate a strategic recalibration of its people and cost models to align with evolving business conditions.
The ongoing wage uncertainty is likely to have implications for employee morale and retention, particularly as the broader IT industry recalibrates talent and compensation strategies amid shifting demand.
Wipro’s CHRO made it clear that the decision on salary hikes will be revisited closer to the applicable cycle, with macroeconomic factors, demand signals, and internal evaluations likely to inform the final outcome.
The cautious tone mirrors a growing trend among India’s top IT firms, where companies are prioritising margin protection and business agility over fixed annual compensation cycles. While this may reflect prudent fiscal management, it also raises questions about employee engagement and long-term talent competitiveness in a tightening labour market.
With no immediate relief expected on global macro headwinds, all eyes will now be on how Wipro—and the broader IT sector—balances talent investments with operational discipline in the quarters ahead.