India's second largest IT firm Infosys has reportedly slashed the employees' variable pay for the first quarter of the ongoing fiscal amid shrinking profitability.
Moneycontrol reports citing sources that an email was sent to employees stating that at an organisation level, the average variable payout is 70 percent.
The email indicated that the pressure on margins is from higher cost of attrition and talent retention as salary levels soar in the tech sector. India’s second largest IT firm Infosys by employee base reported the highest attrition of 28.4 per cent in the April-June quarter. With a net addition of 21,000 employees during the quarter, Infosys is clearing adding firmly to the wage bill.
But Infosys is not alone in taking this action against variable pay. Wipro had announced that the company will not be paying out the variable pay to employees in Band C and junior-level employees will receive 70 percent of their variable pay. TCS had delayed variable pay by a month for specific grades of employees.
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