Infosys and Wipro roll out Q4 variable pay, flag uncertainty

IT services major Wipro has rolled out 80.25% variable pay for its employees for the fourth quarter ended March while Infosys has decided to give out 60% variable pay, according to internal communications seen by ET.

India’s second-largest software exporter had given out 70% variable pay during the first quarter of FY23 and 65% in the second quarter, while Wipro had given 87% variable pay in the Q3 and 100% in Q2.

Wipro and Infosys spokespersons did not respond to queries at press time.


Employees will receive their performance pay in the May payroll, said the communications.

The quantum of variable pay during Q4 has taken a hit for many companies as they struggle with extended deal closure cycles and a cautious spending environment. Companies reported lower than estimated Q4 numbers due to ramp down of deals and in some cases have reported a hiring freeze from the client side.

“While FY23 was a year of strong performance overall, the quarter that went by was impacted by a volatile market and unforeseen events,” the Infosys employee communication said. “As we remain vigilant to the changes in the market, we must also see this as an opportunity to rally as a group and remain committed to navigating the changing business landscape,” it said.

Infosys forecast its slowest revenue growth in six years of 4-7% for FY24 as it flagged “ramp-downs” of client mandates amid an uncertain macro environment in its major markets of the US and Europe.

“Given our overall performance across Wipro, and with the company multiplier at 1, the variable pay for Q4 FY 2023 is 80.25% for employees whose payout is linked to Wipro’s overall financial performance,” the company informed employees.

India’s largest IT services company Tata Consultancy Services (TCS) has rolled out 100% variable pay for employees through last fiscal.

Wipro informed employees that in Q4, revenue grew 6.5% in year-on-year constant currency terms, however, revenue declined sequentially by 0.6%. Wipro guided for a revenue drop between 1% and 3% in the April-June quarter, owing to a negative demand outlook, which was below estimates by brokerage houses.

Wipro’s Q4 commentary numbers followed similar commentary from market leader TCS and Infosys in terms of uncertainty in the client spending environment in the quarter, underlined by project cancellations and ramp downs amidst collapse of major banks and big tech layoffs.

TCS, Infosys and Wipro collectively reported a net drop of 4,613 headcount during the fourth quarter even as the companies reported stable attrition.