Will Cognizant's Wage Hike Impact 80% of Employees?
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Synopsis
Cognizant has announced a significant salary hike for 80% of its eligible employees starting November. This increase, expected to be in the range of 7-9%, highlights the company's commitment to merit-based pay in a challenging market. Discover how this move aligns with Cognizant's overall strategy amid recent performance fluctuations.
Key Takeaways
- 80% of eligible employees to receive salary hikes.
- Increases expected to be between 7% and 9%.
- Hikes effective from November 1, 2025.
- Focus on merit-based increases for performance.
- Similar moves observed in other IT firms like TCS.
Mumbai, Aug 14 (NationPress) - Cognizant, a prominent player in the Global Information Technology (IT) sector, has revealed that approximately 80 percent of its eligible workforce will see a salary increase starting in November. The anticipated hike is expected to fall within a "single high digit" range, specifically between 7 to 9 percent of the employees' current remuneration. This announcement aligns with the company's prior indications during its second-quarter earnings report, where they expressed intentions to implement merit-based salary increments for the majority of their staff in the latter half of 2025.
According to a company spokesperson, "Cognizant today confirmed that nearly 80 percent of eligible employees will be granted a salary adjustment effective November 1, 2025. This reaffirms our earlier statement regarding merit-based salary increases for a significant portion of our workforce during the second half of 2025."
"The salary adjustments will extend up to and including the Senior Associate levels, with variations dependent on individual performance metrics and country-specific factors. In India, top performers will experience salary increases in the high single-digit range," the company elaborated.
"Top achievers will receive the most substantial increments. Earlier this year, Cognizant distributed the highest bonuses to a majority of its associates in the past three years," it continued.
In a similar vein, last week, Tata Consultancy Services (TCS), India’s leading IT services firm, announced a wage revision affecting around 80 percent of its workforce, predominantly targeting mid to junior-level employees. This announcement comes amidst TCS’s plans to reduce its workforce by approximately 12,000 employees, which constitutes about 2 percent of its total workforce, in 2025.
Although Cognizant has reported a 7 percent Year-on-Year (YoY) decline in bookings for the first quarter of the calendar year (Q1 CY25), the trailing twelve-month bookings saw a 3 percent YoY increase, reaching $26.7 billion, bolstered by four significant deals, each valued at over $100 million.
The company also disclosed revenue of $5.1 billion for Q1 2025, reflecting a 7.5 percent rise compared to the same timeframe last year (Q1 CY24).
Point of View
Cognizant's decision to implement significant wage hikes in a competitive IT landscape reflects a strategic effort to retain talent and motivate performance. As the industry faces challenges, such initiatives are essential for maintaining employee morale and ensuring long-term success.
NationPress
19/08/2025
Frequently Asked Questions
What percentage of Cognizant employees will receive a salary hike?
Approximately 80 percent of eligible employees will receive a salary increase.
When will the salary hikes take effect?
The salary adjustments will take effect on November 1, 2025.
What is the expected range of the salary increase?
The salary hike is expected to be in the range of 7 to 9 percent.
Is the salary hike applicable to all employees?
No, the hike is applicable only to eligible employees based on performance ratings.
How does Cognizant's wage hike compare to TCS's recent announcement?
Both Cognizant and TCS announced wage revisions for around 80 percent of their workforce, although TCS is also planning layoffs.
