News: Wipro to pay salary hike of average 5% to its employees

Compensation & Benefits

Wipro to pay salary hike of average 5% to its employees

Good news for the IT Industry after months of layoff dread. Wipro, one of the IT biggies in India, doles out 5% salary hike to its employees
Wipro to pay salary hike of average 5% to its employees

Bringing respite to the IT Industry, Wipro decides to pay salary hike of average 5% to its employees. The hike is below the salary increase of 9.5%, which was given to employees last year, as reported in media.

Employees based on-site have got better hike than last year, these are the ones who are closely associated with the customer base.  They earned just 2% average salary hike last year. This shows that IT service firms are giving more prominence to the employment at the customer locations. 

While Wipro gladly hands over hike of 5%, another IT biggie Infosys has deferred its salary hike to July for its employees and for its senior executives. Though every year it gives hike in April, this year it has pushed it to next quarter. 

There is no denying that due to the downfall in overseas demand the IT sector has slowed down and has impacted the industry as a whole. Also, after the new H1 B visa rules in the US, the preference is being given to local workers than immigrants. The series of layoffs in the IT Industry has further aggravated the situation and has caused huge turmoil within the sector. 

Recently as reported in People Matters, around seven of the biggest IT firms have planned to let go off at least 58,000 engineers this year. The current number is twice the employees laid off by the companies last year.

Unlike the layoffs in the past, the current development has caused a major setback, so much so that, employees are seeking government intervention to save their jobs.  As per the media report, the Tamil Nadu Government is approached by Forum for IT employees (FITE) who are considering their layoffs as illegal.

Indian IT firms are facing intense pressure in the current situation. Amidst the rising concern, IT companies are forced to change their current business models and an overhaul which is leading to job cuts in large number. The Wipro news of salary hike is definitely a ray of hope in the current gloomy scenario. 

Topics: Compensation & Benefits

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