HCLTech Rolls Out Salary Hikes, Top Performers To Get 12-15% Boost
The company expects the wage hikes to have minimal impact on its operating margins during the December quarter
HCLTech, an information technology services firm, will implement a salary hike of 7 per cent effective this October, with top performers set to receive raises as high as 12-15 per cent. The company expects the wage hikes to have minimal impact on its operating margins during the December quarter, according to Chief People Officer Ramachandran Sundararajan.
Announcing the move during the company’s Q2 earnings call, Sundararajan stated, "We have decided to go ahead with the increase, similar to what we did last year, with the hikes effective this month." He also noted that performance-based increments for top performers will remain in the double digits, ranging between 12-14 per cent.
HCLTech, India’s third-largest IT services firm, recorded a headcount of 218,621 employees as of Q2. The number of employees eligible for the hike depends on the company’s review cycle, with lateral hires becoming eligible after completing a year of service.
Jefferies, a global brokerage firm, had earlier anticipated a 110-basis point expansion in HCLTech’s operating margins, driven by the timing of wage hikes and a seasonal uptick. Many Indian IT companies have adjusted wage hike cycles to manage costs amid sluggish demand.
