Another official said, “The salary hikes received are lower than the projections of an average of around 7% with top performers estimated to get increments in the range of 12-15%.”
The new wage hikes announced are being rolled out for the third quarter from October to December.
An email sent to HCLTech did not immediately elicit any response until the time of publishing this article.
HCLTech’s junior-level employees – E0, E1, and E2 levels are in the experience level of up to 10 years. Mid and senior-level employees are E3 level and above, who have not received any raises yet.
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“E0-E2 got their letters in December last week,” one of the above-mentioned officials added.HCLTech, which will report its third quarter (Q3) earnings on January 13, is set to lead the growth for the quarter among tier-I IT services companies.
Recently, ET reported that its larger rival Infosys has rolled out hikes at 90% performance bonus for the second quarter ending September.
However, Infosys and bellwether Tata Consultancy Services (TCS) are reported to have delayed their annual salary hikes for the fiscal year ending March 2025, likely to be announced in the last quarter from January to March period.
Despite a gradual uptick in deal momentum, the $254 billion technology services industry has continued to witness tough macro environment and stagnated client spending with focus on costs and efficiency.
Further, due to a likely impact on margins for the October to December quarter, companies tend to rollout hikes with a delay.
As per multiple IT sector reports, margins are likely to contract with wage hike in Q3 for companies such as Wipro, LTIMindtree and other mid-tier rivals including L&T Technology Services (LTTS), Cyient and Birlasoft. Many others which have delayed the hikes will see expansion of or stable margins for the quarter.
The Q3 earnings will begin with TCS announcing the results on January 9. Infosys will announce it on January 16 and, Wipro & Tech Mahindra on January 17.
