IT major Wipro will give 87 per cent of the variable pay for the third quarter of this financial year. According to a report by Moneycontrol, Wipro's Chief Human Resources Officer Saurabh Govil in an email to employees said that all bands A to B3 employees and all bands in support functions whose payout is linked to the IT services company's performance would get the variable pay.
“Considering the overall performance, with the company multiplier at 1, the variable pay for Q3 FY2022-23 is 87 per cent for all those whose pay-out is linked to overall company performance,” the email read.
This includes employees from the fresher to team-lead bands. For employees in Bands C1 (managers) and above, the variable payout will be as per the performance of the business unit they are part of, the report said.
“For all others, the pay-out is based on their unit/function target achievement as per policy. And will receive a higher pay-out if they have exceeded their unit's target or lower if not…For billable and DOP (Ops, Ops Support) employees, minimum Utilization or Contractual Performance Metrics (CPM) threshold of 50 per cent is required for pay-out,” the email read.
“To drive our common goals, our business-linked variable pay-out is based on a quarter's performance against revenue, bookings, and operating margin,” Govil said, according to the report.
He said, the revenue increased 0.6 per cent quarter-on-quarter in constant currency, bookings increased 23.7 per cent from the previous quarter, and the operating margin increased 16.3 per cent from the last quarter.
Employees will receive the variable pay along with the salary for February. Govil said that the company is confident of remaining on the path to improving margins.
Operating margins at Wipro increased by 120 basis points sequentially to 16.3 per cent in the third quarter. The company paid out 100 per cent of the variable pay in the last quarter.