For the first time since FY17, both Wipro and Tech Mahindra have reported a drop in median employee salaries.
According to their FY25 annual reports, Wipro’s median pay fell by 0.6% to ₹9.78 lakh, while Tech Mahindra’s dropped by 6.52%, with male employees earning ₹18.3 lakh and female employees ₹15.4 lakh.
Why Are Salaries Dropping?
Experts say the main reason is a shift in hiring practices. Both companies have been hiring more freshers and junior-level staff to cut costs and improve profit margins.
Wipro added 732 new employees, and Tech Mahindra added 3,276. With fewer mid- and senior-level hires, the overall salary average has gone down.
Leadership Changes and Focus on Young Talent
Both companies have also seen many top-level resignations. Since March 2024, Tech Mahindra lost over 20 senior leaders, while Wipro has seen 30+ executive exits in two years.
The focus has shifted to promoting internal talent and keeping expenses low under new leadership.
TCS and Infosys Raise Employee Pay
In contrast, TCS and Infosys have increased their median salaries—by 6.3% and 9.6%, respectively.
HCLTech’s report is still awaited, but it hasn’t reported a salary drop in the past 10 years.
Meanwhile, Tech Mahindra has reported pay cuts six times, and Wipro three times in the same period.
Profits Up, Revenues Down
Despite cutting pay, both Wipro and Tech Mahindra boosted their operating margins—Wipro by 1% to 17.1%, and Tech Mahindra by 3.6% to 9.7%.
However, both firms faced a drop in revenues for the second straight year—2.72% for Wipro and 0.21% for Tech Mahindra.
Experts say these firms are taking advantage of a large pool of experienced professionals in a slow job market, hiring at lower salaries.
This strategy helps control costs without majorly affecting the overall talent quality.
