HCLTech Rolls Out Wage Hikes from October 2025, Converts Variable Pay to Fixed Salary.
HCL Technologies (HCLTech), a leading IT services firm, announced a significant move to boost employee compensation, effective from October 2025. The company has decided to convert quarterly variable pay into fixed salary for all employees and roll out wage hikes in line with its strong quarterly performance. This development was shared by Ram Sundararajan, Chief People Officer, in the earnings call for the quarter ended September 2025.
Wage Hike Details and Compensation Shift
HCLTech reported a robust quarter with revenues growing 11 percent year-on-year to ₹31,942 crore in Q2FY26 and net profit rising by over 10 percent to ₹4,235 crore. Given this performance, the company has chosen to implement salary increments effective from October, following a similar process as the previous year when a 7 percent salary hike was implemented along with top performers receiving raises up to 12-14 percent.
The critical strategy in this compensation revision is moving the variable pay component, which is typically performance-linked and paid quarterly, to a fixed pay structure merged into the monthly salary. This approach ensures greater salary certainty and financial stability for employees, reflecting HCLTech’s recognition of their contributions to the company’s results.
Workforce and Attrition Insights
The announcement coincides with HCLTech’s continued workforce expansion, with a net addition of 3,489 employees in Q2, taking the total headcount to 226,640. The company onboarded 5,196 freshers in the quarter, highlighting strong recruitment trends, with a total fresher addition reaching 7,180 in the first half of FY26. Voluntary attrition has slightly improved, decreasing 20 basis points to 12.6 percent on a last twelve months (LTM) basis, indicating steady employee retention amid competitive market conditions.
Financial Outlook and Consequences
HCLTech maintains a revenue growth forecast of 3-5 percent year-on-year in constant currency for FY26, with expected operating margins between 17-18 percent. The wage hikes and pay structure shift reinforce the company’s commitment to employee welfare and could potentially reduce attrition further by offering more attractive and predictable compensation packages.
In summary, the wage hikes and the transition from variable to fixed pay at HCLTech represent a thoughtful move to enhance employee satisfaction and financial security. It signals strong corporate confidence in sustained business performance and a strategic effort to retain talent in a competitive IT services industry.
This compensation adjustment may prompt other IT firms to consider similar moves, potentially setting new standards for employee remuneration practices in the sector.