Wipro Defers Wage Hike Decision Amid Rising Global Trade Uncertainty

The cautious approach to compensation comes amid mounting concerns over a potential economic slowdown. These concerns were amplified after US President Donald Trump declined to rule out a recession

Govil noted that the company had already advanced wage increases in September 2024, less than a year after its previous hike in December 2023.

Source : ABPLIVE AI

Wipro has announced that decisions regarding employee wage hikes for the financial year 202526 will be made closer to the time, citing an increasingly uncertain global economic environment. The move follows a similar stance by industry giant Tata Consultancy Services (TCS), which also deferred its salary revisions this year, stating that hikes would be implemented based on prevailing business conditions. 

“We are still very far from that time, and in this uncertain environment, we will decide closer to the date,” said Wipro’s Chief Human Resource Officer, Saurabh Govil, following the company’s Q4 FY25 results. 

He noted that the company had already advanced wage increases in September 2024, less than a year after its previous hike in December 2023.

The cautious approach to compensation comes amid mounting concerns over a potential economic slowdown. These concerns were amplified after US President Donald Trump declined to rule out a recession, even as his administration moves ahead with aggressive trade tariffs. 

Wipro’s CEO, Srinivas Pallia, pointed to growing macroeconomic uncertainty heading into FY26, emphasising that the impact of tariffs on global trade, especially between Europe, the US, and China, is creating ripple effects across client markets. 

“I don't have a crystal ball that tells me how it (macroeconomic issues) goes… going from the context of FY25-26, the uncertainties have dramatically increased,” Pallia said during a press briefing. 

He warned that European clients, in particular, are likely to feel the squeeze due to the cross-border impact of the tariffs, which could weigh on discretionary tech spending. Based on these factors, Wipro has framed its guidance cautiously, factoring in both client sentiment and the evolving macroeconomic landscape.

Wipro Q4 Result

IT services giant reported on Wednesday a 6.4 per cent sequential increase in net profit to Rs 3,569.6 crore for the fourth quarter ended March 31, 2025, marking a robust 25.9 per cent year-on-year growth. The company's gross revenue for the quarter stood at Rs 22,500 crore ($2,634.2 million), reflecting a modest 0.8 per cent rise quarter-on-quarter and a 1.3 per cent increase compared to the same period last year.