After Infy, Wipro, TCS & Satyam, its now HCL to cut variable pay & freeze salary

It was Infosys, TCS and then Wipro followed by Satyam, Now salary freeze and a truncated variable pay has been enforced in HCL. IT major HCL Technologies has announced a salary freeze and bonus cutbacks for all its employees through 2009-10 (Source: Times of India).

"According to a report in a business daily, IT major HCL Technologies has decided to mitigate pressures on operating margins by freezing salary increments through 2009-10. Citing tight demand in the US and Europe, declining volumes, and the need to further tighten expenses across business divisions, the company reportedly told its employees that there won’t be any wage hikes for the financial year ending July 31, 2009. "

"The report says that though the company has so far not opted for salary cut, a 25 per cent salary cut for the employees on the bench has been considered. The company has also cut retainer bonus, which averages 10 per cent of an employee's salary, from April 1. Employees travel allowances to have been sharply reduced. Onsite allowances too are said to have been slashed. HCL is also reportedly looking at suspending matching contributions to employee retirement plans. Earlier in January, HCL had cut about 280 jobs, or 8 per cent of its global workforce. Reports indicated that the company is learnt to have laid off about 450 people from its British Telecom practice. "

Source: Times of India