TCS, Wipro and other IT firms are increasing salary hikes by up to 120%, know why

Many Indian IT and software companies have had considerable attrition rates over the past few quarters, with more individuals leaving their jobs. Numerous IT companies have made measures to solve this issue, including wage increases and bonus payments to retain employees. These companies include Wipro, Infosys, Tata Consultancy Services, and HCL Technologies. Wipro has announced that beginning in September, workers would get wage increases.The following is how businesses intend to retain workers by increasing salaries, giving bonuses, and providing other benefits: Wipro According to a report by Mint, Wipro has stated that its intentions for compensation hikes have not changed and would be implemented starting in September. “There is no change to our earlier statement on salary increase, and hikes for our employees will be effective from September 1, 2022. We have also completed the first cycle of quarterly progressions effective July 1, 2022. We have no further comments on the quantum of variable pay," Wipro was quoted as saying by the newspaper.The company's statement came amid accusations that it would not take specific staff groups into account for raises. “Wipro will roll out several promotions for its employees, starting July. Going forward, the company has decided to offer quarterly promotions to its top performers, up to mid-management level. Wipro is expected to roll out hikes in September," the IT major had said earlier.Infosys The attrition rate is still high, but Infosys, a major IT firm, is increasing salaries and may increase net recruiting, which could have an impact on the company's short-term profitability. The attrition rate grew from 27.7% to 28.4% during the quarter ending in June 2022, and the company plans to lower it.Nilanjan Roy, the chief financial officer of Infosys, has stated that, “We are fueling the strong growth momentum with strategic investments in talent through hiring and competitive compensation revisions. While this will impact margins in the immediate term, it is expected to reduce attrition levels and position us well for future growth. We continue to optimize various cost levers to drive efficiency in operations."TCS Due to the company's high attrition rate of 19.7% during the first quarter of the current fiscal year, Tata Consultancy Services, the largest IT company in India, has declared that it will raise staff compensation by 5-8%.TCS's chief human resources officer, Milind Lakkad, announced a raise in salary of up to 8%. “Following our annual compensation review, employees received salary increases of 5 to 8 per cent, with top performers getting even bigger hikes. Our empowering, performance-driven work culture is helping us attract local talent across all our key markets”, further added.