Wipro to offer 87% Q3 variable pay to bulk of its workforce

Wipro plans to give out 87% of the variable quarterly pay component to over 80% of its workforce, according to an internal email.

The payout will be for bands A to B3 for the third quarter, which means across freshers and team leader levels. ET has reviewed a copy of the email sent to employees.

The payout will be based on the respective unit’s target achievement for the rest of the staff, as per the email. The company had awarded 100% variable pay for the same cohort last quarter.

Wipro did not respond to ET’s queries till press time Wednesday.

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

The Bengaluru-based IT services firm has achieved 0.6% growth in sequential revenue, 23.7% sequential increase in bookings and an improvement in operating margin at 16.3%, which is “still below (Wipro's) planned target,” it said.

The variable pay will be released along with February month’s payroll, and a minimum utilization level of 50% is needed for billable and DOP (digital operations and platforms) employees for being eligible for the payout, the email showed.

Bigger rival Tata Consultancy Services last month rolled out 100% variable pay for 70% of its employees for the third quarter ended December 31.