Wipro raises fixed pay in compensation

BENGALURU: Wipro has reduced the variable component in the overall compensation of junior and mid-level employees effective June. Following a path Infosys set two years ago, India's third-largest IT services company has reduced the quarterly performance linked compensation (QPLC) and increased the fixed component to bring more predictability and consistency to compensation.

At the junior level (B1 and B2 band), the company has reduced the QPLC from 10% and 12 % of CTC (cost to company) to 5% and 7.5% respectively. At the mid-level (CI and C2 bands), it has dropped from 24% of CTC to 15%. Also, the sales incentive for employees in the B3 band and below has come down from 30% of the CTC to 25%.

The performance-linked incentive is given to employees based on individual or combined performance of the business unit, division or segment. The profit targets for each department are set quarterly, and payouts vary based on actual achievements.

The company said consistency is the next big thing to certainty. "Ask Floyd Mayweather Jr and you'll know what we mean. Floyd is regarded as the best ever pound-for-pound boxer. He is unbeaten in the world of professional boxing.....Floyd's unbeaten record is something unique. His consistency in delivering results can only be bettered by the certainty of winning every time. With a decrease in variable salary and a proportional increase in fixed, Wipro salary stack offers higher certainty to your pay," it said.

Harish H V, partner in consultancy firm Grant Thornton, said higher fixed component in the overall compensation is an attractive proposition to junior-level employees. "It builds more predictability into the salary structure of employees," he said.

Wipro Technologies (Wipro Ltd)