HCL Tech has announced a 7% salary hike for its employees, effective October 2024. Top performers at the company are set to receive raises of up to 12-15%, according to Chief People Officer Ramachandran Sundararajan.
The salary increase comes as HCL Tech reported an 11% year-on-year rise in net profit to Rs 4,235 crore for the second quarter ended September 30, 2024.Revenue from operations grew by 8.2% to Rs 28,862 crore compared to the same period last year.
Sundararajan stated that the wage hikes are expected to have a minimal impact on the company’s operating margins in the December quarter. HCL Tech is actively working to offset the impact through efficiency measures.
The number of employees eligible for the hike will depend on the company’s review cycle and the proportion of lateral hires who become eligible after completing a year of service. As of Q2, HCL Tech’s headcount stood at 218,621, a decrease of 780 employees from the previous quarter.
This move follows the company’s established annual compensation review process. It comes at a time when several major Indian IT companies have shifted wage hikes to the third quarter of FY25 to manage costs and sustain profitability amidst a sluggish demand environment.
HCL Tech’s Q2 performance exceeded market expectations, with EBIT margin coming in at 18.6%, growing 149 basis points sequentially. The company continues to focus on efficiency and growth while investing in its workforce.
