Cognizant Clears Salary Hikes for 80% Employees
- Cognizant to award salary hikes to 80% of eligible employees from November 1, focusing on performance-based increments.
- Top performers in India to receive high single-digit increases; bonuses earlier this year were the highest in three years.
- Company plans to hire 15,000-20,000 freshers in 2025, with significant headcount growth in the June quarter.
Ending months of uncertainty, global IT services major Cognizant has announced salary hikes for around 80% of its eligible employees, effective November 1. The decision follows the company’s earlier guidance during its second-quarter earnings that the majority of staff would receive merit-based increments in the latter half of 2024.
The hikes will apply to employees up to and including the senior associate level, with the quantum linked to individual performance ratings and geography. In India, consistent top performers will see increases in the high single digits. 'Top performers will receive the highest increases', a company spokesperson said, adding that earlier this year, most associates received their highest bonuses in three years.
Traditionally, Cognizant’s increment cycle begins on August 1. However, this year’s delay came amid global macroeconomic headwinds, including US President Donald Trump’s tariff measures that have weighed on client tech budgets. The US imposed a 25% tariff on Indian goods effective August 7, with an additional penalty of the same magnitude set to take effect on August 27 for purchases of Russian oil and arms.
The Teaneck, New Jersey-headquartered firm added approximately 7,500 employees during the June quarter, taking its total headcount to 343,800. Attrition fell to 15.2% on a last-12-month basis.
Looking ahead, Cognizant plans to hire between 15,000 and 20,000 freshers in 2025. CEO Ravi Kumar S described the June quarter as one of the first in recent years to witness significant headcount growth, driven largely by fresher recruitment in India.
With peers like TCS already having rolled out hikes, Cognizant’s move is expected to boost employee morale and strengthen its talent retention efforts.
