Variable Pay Policy 2019-20 v2
Variable Pay Policy 2019-20 v2
Variable Pay Policy 2019-20 v2
Table of Contents
2 Objective
2.1 To share organization success basis revenue and Margin achievement.
2.2 To reward individual behavior based on the individual role.
3 Eligibility
3.1 This plan is applicable to all employees of Wipro, except for DO&P, from Band A1 to E and
TEAM RAINBOW, eligible for VARIABLE PAY as per employee’s salary stack.
3.2 The program is applicable to employees at offshore & onsite development centers, near-
shore development centers, and those on long term assignments from one country to
another.
3.3 For any acquired entity which has a different variable pay policy, the respective entity
policy will apply.
For these employees while arriving at final utilization, the days spent in other company
code will be considered as transfer backoff and same will be dedicated from total spent
days in a quarter.
WT* Wipro Technologies
WE21 Wipro Arabia Limited
WE22 Wipro Airport IT Service Limited
WE23 wipro Infotech Egypt SAE
WE24 Wipro Bahrain
WE25 Wipro DOHA LLC
WE26 Wipro Gulf LLC
4.10 Manager Evaluation – Component applicable for C1- Band E, with 20% weightage,
determined by Manager Evaluation along with the Quarterly performance appraisal.
4.11 Non Billed - Employee who is working in a project, but his/ her time & effort is not billed
to the customer.
5 Summary of VARIABLE PAY Program: The tables below show the VARIABLE PAY linkages applicable
for various bands and employees who are not in commit roles.
Table 1
5.1 All financials metrics applicable for variable pay calculation would be measured on a year to
date plan achievement basis.
5.2 The payout for employees will be independently computed based on the quarterly target
variable pay for that quarter.
5.3 Most Prominent VARIABLE PAY Unit as mentioned above shall be determined as stated in
section 9.2 of this policy. List of VARIABLE PAY Units is mentioned in Annexure 3
5.4 CSAT will be gating/moderating criteria. MQ team to provide CSAT scores, based on Pulse &
PCSAT survey. Details are mentioned in the Annexure. This is applicable for all Bands
5.5 Identification of Central Service Functions would be as per cost centre tagging.
6 Payment Terms
6.1 Band B3 and below employees on billable roles will receive actual VARIABLE PAY with
the next month payroll after the quarter end, example: for Apr-May-Jun quarter, payout
will be made along with July payroll. For USA payouts will be as per the bi-weekly payroll
calendar (People PracticesAmericasUSAMy FinancialsBiweekly Payroll calendar).
6.2 For all other Bands and B3 and below employees in Service Functions and other Support
roles VARIABLE PAY / Variable payouts would be made in the second month payroll after
the quarter end as already mentioned in the policy document, example: for Apr-May-
Jun quarter, payout will be made along with August payroll. For USA payouts will be as
per the bi-weekly payroll calendar (People PracticesAmericasUSAMy
FinancialsBiweekly Payroll calendar)
The payout factor will be decided by the Executive Directors based on company
performance. The factors would be 0.9/ 0.95/ 1.0/ 1.05 or 1.1. This factor will be applied
on the business linked payouts on a quarterly basis.
6.16 Recovery of Variable Pay processed would follow the below logic.
6.16.1 Variable pay paid out in a quarter, due to be recovered on account of scenarios
including Factor and achievement change, Target revision, Billability change, Unit
Mapping change, Support flagging change or any other scenario as approved by C&B
Head, would be adjusted in the subsequent quarter’s variable pay payout.
6.16.2 In case Variable pay due for recovery is higher than the variable pay payout in
the next quarter, the same is carried forward till subsequent variable pay payouts within
the Financial year. In case of any variable pay payout from Q1 to Q3, pending adjustment
after Q4 payout will be recovered from the subsequent month salary.
6.16.3 For variable pay recovery on account of payout in Q4 of the Financial year, the
recovery would be done from the Q1 Variable pay of the subsequent Financial Year. In
case of pending recovery after Q1, the same would be adjusted from subsequent month
salary.
6.16.4 In case an employee exits with a pending recovery from any previous quarter
payouts, the same will be recovered from the Final Settlement of the employee.
7.1 Commit metric will be the overall gating criteria for variable pay eligibility against
business metrics. Payout towards business metrics will be zero if the commit is not met.
This is applicable for each of the quarters including Q4 (year-end payout).
7.2 Manager Evaluation – Since Commit roles have a Manager evaluation parameter, only
80% of the quarterly target variable is linked to primary and secondary metric/s.
Manager evaluation component is paid irrespective of Commit met.
7.3 Upon meeting the commit in a quarter, each of the metrics - commit and secondary,
would be independently computed and paid to a cap of 100% of the respective metric.
Amount paid in Q1-Q3 will not be recovered if FY commit is not met.
7.4 If Commit is met (or exceeded) in a quarter, 100% of the commit linked metric (in
addition to Manager evaluation if applicable for the role) will be paid. Secondary metric
will be independently computed based on factor table and paid to a cap of 100%.This is
applicable to Q1, Q2 and Q3.
7.5 If the Commit is not met in a quarter, no Variable Pay will be paid in the quarter except
the manager evaluation. However, the role holder will have the opportunity to make up
the shortfall in Commit in subsequent quarter(s). Also any excess beyond commit in
earlier quarters will first go towards meeting the commit in the subsequent quarters. So
in quarters when quarterly commit is not met, but YTD commit is met then any lost
7.7 Q4/year end pay out - Q4 pay-out will be derived based on full year achievement on
commit & secondary/tertiary metrics.
7.7.1 If Commit is met for the year, variable pay is computed independently on primary
(commit) and secondary (and for some roles tertiary) parameters for the full year
achievement based on the factor tables in Annexure 2b.
7.7.2 If annual Commit is not met, any Variable pay paid against commit metric in prior
quarters when the Commit was met individually or YTD basis will not be
recomputed.
7.7.3 Cases where, at the end of the year the primary commit is met, but may fall
below the threshold on their secondary metric would lead to recovery of the
variable paid in Q1 to Q3 on that secondary (and/or tertiary) component.
7.8 Moving out of Commit role in the middle of FY
7.8.1 Employee who move out of commit role in mid-year, will not have YTD true-up for
the duration spent in commit role. i.e. payout done as per commit policy for the
respective quarter will be the final payout for employees who move out of commit
roles.
8.1 The Company Performance multiplier detailed in Section 6.15 would be applied on the business
linked payout for all Band E employees, irrespective of the plan.
8.2 All Band E Employees on non-commit roles will be eligible for True up in their pay outs every
quarter based on YTD achievements.
Billability percentage shall be directly used to determine the individual billability factor as
per the slabs defined in Annexure 2
AL + CB + LB + WH + BIS
𝐵3& 𝐵𝑒𝑙𝑜𝑤 𝑢𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 % =
Total Days − LOP − TR − WE
AL + CB + LB + WH + BIS
𝐶1& 𝐴𝑏𝑜𝑣𝑒 𝑢𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 % = ÷ 𝑢𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 𝑡𝑎𝑟𝑔𝑒𝑡
Total Days − LOP − TR − WE
Investment: SDH can approve some cases under Investment category for a certain period. For
purpose of VARIABLE PAY computation, investment days will be considered billed to the extent of
investment percentage. The reason codes for investment tagging are below:
LEVEL INVESTMENT REASONS
Strategic Training
SBU/ Vertical Deal Chase
COE investments
Strategic Training
SL
COE investments
Waiting for work permit post selection
Billable Project
Waiting for background verification customer specific
9.2 Movement from billable role to support role - If an employee moves from billable role to a
support role or vice-versa then his/ her linkage will be determined based on the number of days spent
Version 1.1 VARIABLE PAY for Non-sales FY19-20
9.4 New Lateral /MBA campus hires - For the first 3 months (92 calendar days) from the date of
joining Billability factor would be considered as 1.00 irrespective of their billing status. Other linkages
would be as per achievement of the VARIABLE PAY unit and there shall be no protection. This is referred
to as lateral back-off.
9.5 Leave as per Policy – Approved paid leaves, taken during unbilled days, as per policy will be
considered utilized. Un-paid leaves will not be considered while arriving at total eligible days for
VARIABLE PAY computation
*for details on applicability of variable pay while on Maternity leave – refer section 11
**Applicability of sick leave for variable pay computation will vary and depend as per Geography
definition of leave.
9.6 Billability status on Wipro holidays – The billability status on a Wipro holiday would be same
as the billability status on the last working day before the Wipro holiday, e.g. if an employee is billable
on 14th August 2017 then on 15th August 2017, the employee would be considered billable, however if
an employee is non-billable on 14th August 2017, then the employee would be considered as non-
billable on 15th August 2017. The same would be applicable to employees who are partially billable.
9.7 Billability Measurement – Utilization would now be based on actual working days in a quarter
instead of calendar days. Hence weekly-offs are not part of the numerator or denominator while
computing utilization. However, utilization would continue to be computed considering partial billability.
• 50% Billed and 50% Non-billed = 50% Utilized
• 40% Billed and 60% Non-billed = 40% Utilized
• 40% Billed and 60% Investment = 100% Utilized
9. 8 C1-D2 Billable – will have a band-wise differentiated target for individual billability as a percentage
of total net work days in the quarter. This includes roles as per section 4.2
C1 : 90%
C2 : 70%
D1-D2 : 60%
9.9 If an employee is in two different projects with 50% allotment each for a particular quarter, in
such a case employee would be paid based on home side cost center for the concerned quarter.
10 Guidelines for Revenue, Profitability, and CSAT Linkage for VARIABLE PAY/ Variable pay
10.1 Role/Stream Determination:
10.1.1 Commit role holders’ Role mapping would be done basis the Role updated under the Role
Master in SAP.
10.1.2 Employees who are tagged to Central Support Functions would be determined by the no.
of days spent by the employee in Central Support Functions Cost center
Version 1.1 VARIABLE PAY for Non-sales FY19-20
In case of no manager inputs, 15% would be assumed as default payout- this would
apply only in case employees themselves are not self-appraisal/L1 submission defaulter.
10.6 IBM rebadged employees irrespective of billable/support flag as per system will be
measured on support plan as below:
for B3 and below employees – 50% IT Services Revenue + 50% IT Services OM
for C1 and above employees – 40% I&ES Revenue + 40% IT Services OM + 20%
Manager Evaluation (With CSAT scores as applicable as multiplier)
10.7 For assignees in KSA, Bahrain and Kuwait, UAE, Oman, Qatar who are eligible for variable
pay, and exit in mid quarter with full & final settlement at onsite and come back to offshore will be paid
variable pay as per the QPLC/variable pay % of previous quarter. Even for those employee who exit
If the previous quarter pay % is not available at time of return, past quarter(s) pay %
will be used.in addition, if for scenarios where previous quarter payout is not available
in system, in particular, if employee was not on a QPLC plan in previous quarter or for a
new joiner – 100% QPLC pro rata to be paid at the time of FS.
11.1 Section 11.1.1, 11.1.2 and 11.1.3 applies to employees based in India, US, UK, Europe and Australia who
are applying for Maternity leave on or after April 01, 2019
11.1.1 For all B3 below support employees, irrespective of their role tagging will be paid as - (50% Revenue of
IT Services and 50% OM of IT Services) *CSAT of IT Services
And for all C1 above support employees will be paid as (40% Revenue of the unit and 40% OM of the
unit) * CSAT of the unit – Manager evaluation weightage of 20% will be protected and paid full 100%
Unit would be BU/SL/IT Services – derived based on most prominent number of days as per cost center in the
appropriate system
11.1.2 Pay-out cycle - All such support employees will be paid QPLC pro rata as per their ML duration in the
2nd month following the end of the concerned quarter
11.1.3 For all billable employees, 100% variable pay will be paid pro rata as per their ML duration in the 1st
month (for B3 below) and 2nd month (for C1 above) following the end of concerned quarter
11.2 For employees who are on Maternity Leave before April 01, 2019 or applied Maternity Leave* before April
01, 2019 will be paid 100% Variable Pay on pro rata basis for concerned quarter.
*since there is also a provision to change ML dates for employees, the policy will apply as per the final ML date
that employee will update.
11.3 Also, for all employees in other Geos, which is not listed in above clause, will be paid 100% Variable Pay on
pro rate basis for concerned quarters
12. Applicability of Variable Pay for exiting employees with Full and Final Settlements on or
after April 01st 2019
For B3 and below billable employees – If exit is before 20th of the first month post quarter end, pay-out will be
average of last 2 quarters variable pay-out. If exit is on or after 20th day of the first month post quarter end,
pay-out will be paid as per concerned quarter achievement.
For all other roles – if exit is before 20th of the second month post quarter end, pay-out will be paid average of
last 2 quarters variable pay. If exit is on or after 20th day of the second month post quarter end, pay-out will be
paid as per the concerned quarter achievement.
For scenarios where last two quarter variable pay-outs are not available in system (new joiners, moved to non-
sales role from sales or delivery incentive plans, or any other reason)
B3 and Below
All Streams in Support roles including Presales, Advisor and Alliance roles*:
*Note – B3 and below employees in India-SRE will be measured at Wipro Limited Revenue and Wipro Limited
OM with Wipro Limited CSAT as moderating factor.
C1 and Above
{(40% SL/Practice ACV Achievement factor) + (40% SL/Practice Revenue Achievement Factor)} * Unit CSAT
Factor + (20% Manager assessment factor)
Delivery Plan – this will be applicable to role holders signed-off by GDE team:
{40%* BU/vertical/SL Revenue Achievement Factor+ 40%* BU DU/vertical DU/SL DU Execution Margin
Factor} * Unit CSAT Factor + (20%*Manager assessment Factor)
Delivery plan – employees in Model A and working in verticals, financial achievement will be measured on SL DU
execution margin + SL revenue.
Specialists tagged as billable for the most prominent part of the quarter (includes Consultants):
{(40%* Unit Level Revenue Achievement factor) + (40%*Unit Level Individual Utilization Factor)}*Unit Level
CSAT Factor + (20%*Manager assessment Factor)
{(40%*Unit Level Revenue Achievement Factor) + (40%* Unit Level OM Achievement Factor)}*Unit Level CSAT
Factor + (20%*Manager assessment Factor)
Unit can be BU/SL/IT Services as per most prominent days basis cost center tagging
Central Service Functions (Not aligned to SBU/SL’s – Legal, Fin, CTO, TA, TT,SHG)
Central Service Functions (Aligned to SBU’s and SL’s –HR, WMG, MQ)
Band B3 and below
{50%* IT Services Revenue Achievement Factor+50%* IT Services OM Achievement Factor} *
IT Services CSAT Factor
Band C1-D2
BU Consulting Head
{40% Domain Consulting Revenue Factor + 40% GCG led SBU Revenue Factor } * Unit CSAT Factor + (20%
* manager assessment factor)
{40% Vertical Consulting Revenue Factor + 40% GCG led SBU Revenue Factor } * Unit CSAT Factor + (20%
* manager assessment factor)
{40% SL Consulting Revenue Factor + 40% GCG Revenue Factor } * Unit CSAT Factor + (20% * manager
assessment factor)
For SL consulting Head plan in Digital consulting the business metrics will be digital consulting revenue and
Wipro Digital revenue
{40% GCG Revenue Factor + 40% Digital Consulting Revenue Factor } * Unit CSAT Factor + (20% *
manager assessment factor)
Digital Engg. Head Plan, Transformation Program Office and Digital Support Plans
{40% Wipro Digital Revenue Factor + 40% Wipro Digital ACV Factor} * Unit CSAT Factor + (20% *
manager assessment factor)
{40% Wipro Digital Revenue Factor + 40% COE Billable Person-month growth Factor} * Unit CSAT Factor +
(20% * manager assessment factor)
{50% Wipro Digital Revenue Factor + 50% COE Billable Person-month growth Factor} * Unit CSAT Factor
COE Plan applicable for 6 COE in Digital - Buildit, Architecture, Digital Consulting, Design, MarTech, and Agile
Practice Plan
{40% Digital Experience(DX) ACV Factor + 40% Wipro Digital Revenue Factor} * Unit CSAT Factor + (20%
* manager assessment factor)
I&ES Plan
{40% I&ES Revenue Factor + 40% I&ES Execution Margin Factor} * Unit CSAT Factor + (20% * manager
assessment factor)
ALL BANDS
INDIVIDUAL BILLABILITY FACTOR
BILLABILITY % ÷TARGET BILLABILITY %
90.00% - 100% 1.00
50.00% - 89.99% Linear
0.00% – 49.99% 0.00
0 % - 90% 0
> 90-95% 0.8
> 95-99.99% 1
> = 100-105% 1.2
> 105-110% 1.4
> 110%-115% 1.6
> 115%-120% 1.8
> 120% 2
CSAT Moderator
Billable Person month growth achievement - Applicable to employees with a linkage to Billable
person month growth, applicable to Wipro Digital COE Plan
0 % - 59.99% 0
60% - 110% Linear
>110% 1.1 times of
Achievement %
>180% 2
<50% 0
50.01% - 60% 0.7
60.01% - 70% 0.8
70.01% - 80% 0.9
80.01% - 90% 1
90.01% - 100% 1.5
>100% 2
• Collection multiplier will apply as final multiplier, instead of CSAT to SRE and SL/common employees in C1
and above bands
• All SRE tagged employees will have Collections Multiplier only as the final multiplier
• All SL / Common employees will have 50% linkage to Collections multiplier and 50% to CSAT
• Collections multiplier will not apply to PRE-tagged employees
• Any collection from Arbitration cases will not be included in Collection computation for multiplier purpose.
• Collections target will include Products number for Products Head
Revenue/ACV
CSAT Moderator
Inability to complete the self-appraisal within the published timelines will result in a 0% payout on
the Manager Evaluation component of Variable Pay.
All managers who have 3 or more reportees and have not closed the reviews as per Perf Nxt
timelines are considered as L1 Review defaulters. The impact is in proportion to the number of
reviews not closed by the cut off as explained below:
Inability to complete the self-appraisal within the published timelines will result in a 0% payout on
the Manager Evaluation component of Variable Pay.
Additionally, in a scenario where a reportee has not received Manager Evaluation input, payout for
the reportee will be defaulted to 15%.
However, if the said reportee is playing a manager role and has not given Manager Evaluation, same
logic as mentioned above will also apply.
1. Effective date
April 1st 2019. Applicable from first quarter of FY20.
Project Satisfaction Survey End of project; once in year for long duration AMS projects and for Programs;
ANNUAL SATISFACTION
REVENUE
SURVEY (ACSAT)
< 10 million 3 5
10 million to 50
5 8
million
> 50 million 8 12
3.1 CSAT Score computation guidelines for Q1, Q2, Q3 based on pulse survey & PCSAT
CSAT score that positions VARIABLE PAY units in specific scoring band is arrived as below:
CSAT SCORE VENDOR SCORE CSAT SCORE FOR
PULSE SURVEY SCORE PCSAT SCORE
COMPUTATION CARD QUARTER
Average PCSAT score CSAT score to be
Average score of 6 pulse
from all projects in the arrived from Pulse
questions from all contacts
Vertical in the survey score, PCSAT
polled in that quarter in the
respective Quarter score and Vendor
vertical
Vendor score card Score card
Vertical
At vertical level scores
At Vertical level minimum 5
minimum 5 PCSATs to
Pulse responses to be
be received to qualify
received to qualify for Pulse
for PCSAT score
score
CSAT score to be
Average score of 6
arrived from Pulse
questions from all contacts Average PCSAT score Vendor score card
SBU survey score, PCSAT
polled in that quarter in the from all projects in BU scores
score and Vendor
business unit
Score card
* DO&P CSAT score will not be considered for VARIABLE PAY calculations of BU / Vertical / Account
/ Wipro level
* If the BU / Vertical has not met the PCSAT initiation / coverage criteria or Min. Response Criteria
for Pulse/ACSAT, for the Qtr then the CSAT factor will be considered at the next higher level but
capped to a max of 1.0
* If the Account has not met the Min. Response Criteria for Pulse/ACSAT, for the Qtr. then the
CSAT factor will be considered at the next higher level but capped to a max of 1.0
4 PCSAT - Considerations:
• Pulse survey is administered to a random, stratified sample of respondents at all 3 levels (CXO, Senior
and Mid), in the 2nd month of every quarter, who have been ‘actively involved’ with Wipro. ACSAT
survey is administered to all active customer contacts in the account.
• For MEGA/GAMA and KEY GROWTH accounts, a minimum number of responses for pulse/ACSAT
survey are required for the score to be considered valid for the quarter.
• CXO may not be mandatory for Pulse survey, however for ACSAT survey it is recommended to poll
CXO for focused accounts.
6 EXCEPTIONS
7 SOP
Detailed SOP is available in Quality Knowledge Management site.
REVISION HISTORY