Amid tech layoffs, Infosys and Wipro cut down on average variable pay of employees

Wipro and Infosys are reportedly planning to offer reduced variable pay, read on to know more.

Amid tech layoffs that have gripped the globe, Infosys and Wipro, who have fired employees in the recent past, are now taking few other cost cutting measures. It seems that IT companies will now be cutting variable pay to workers, whereas TCS is giving 100 percent to its employees.

Here’s all you need to know:

-The IT companies like Wipro have reportedly told their employees that it will release only 80.25 percent variable pay to employees. “Given our overall performance across Wipro, and with the company multiplier at 1, the variable pay for Q4 FY 2023 is 80.25 percent for employees whose payout is linked to Wipro’s overall financial performance,” the company mentioned.

-While the reason behind not paying full variable pay is not known, the decision could be attributed to the reduction in revenue growth. There are even reports claiming that Wipro saw a decline of 0.6 percent in revenue for Q4 FY23, and might be able to witness a drop of up to 3 per cent in the April-June quarter.

-Another IT major, Infosys, too is looking to offer reduced variable pay. A report from TOI mentioned that the company is all set to give an average variable payout of 60 percent to its employees for the quarter that ends in March.

-The report also claimed that the company will start sending an email for variable pay to employees on May 19, and it will be paid to the workers along with their May salary. “While FY23 was a year of strong performance overall, the quarter that went by was impacted by a volatile market and unforeseen events. We need to rally as a group and remain committed to navigating the changing business landscape,” Infosys reportedly stated internally.

-While the employees are not happy with the slashed variable pay, those who work at TCS are getting 100 percent variable pay, according to an email sent internally. Although only employees who are part of the C2 band will get the same.