Cognizant to increase salaries for majority of employees from November 1

Top pay hikes in India to be in high single digits

IT services company Cognizant has said it will hike salaries for a majority of employees effective November 1, bringing an end to the uncertainty that prevailed since the Nasdaq-listed firm held back from raising wages earlier this month due to macroeconomic headwinds.

 

The company had assured in March that hikes will roll in from August. Last year, Cognizant provided hikes in the range of 1-5 per cent. 

 

The company has now said that 80 per cent of its eligible employees will be given a pay hike, in line with the policies adopted by all IT companies where the rest are awarded a raise based on business unit and company performance. That 20 per cent is usually senior and C-suite executives.

 

 

“This aligns with its announcement during its second quarter earnings that it plans to award merit-based salary increases for the vast majority of employees during the second half of 2025,” Cognizant said in a statement.  

 

The hikes will be delivered up to, and including, the senior associate levels. The amount of these increases will vary depending on individual performance rating and country. In India, pay increases for highest performers will be in the high single digits. There was no word on the amount of hike for onsite employees.

 

Cognizant added 7,500 people during the second quarter and its headcount stood at 343,800 as of June 30 as the company hired fresh engineering graduates from Indian colleges.

 

It usually gives hikes and bonuses in March but since Ravi Kumar became the chief executive, bonuses were retained for March while hikes were pushed back to August.

 

Cognizant had in July said that it was yet to take a decision on salary increase.

 

“This decision was made with a long-term view that considers both investment in our people and the future of our business,” CFO Jatin Dalal told Business Standard during an earnings conference call.

 

The decision comes a week after TCS, the largest IT services company in India, said it will hike salaries for its employees from September 1. The hikes were due in April.

 

The compensation revision was for all eligible associates in grades up to C3A and equivalent, covering 80 per cent of our workforce.

 

With hikes now being announced for these two companies, besides Infosys, all eyes will be on Wipro. The company’s hikes usually come into effect from September 1. In July, it had refused to comment on it citing market conditions.