Good News! Indian IT Firm Cognizant To Roll Out Salary Hikes For 80% Of Eligible Staff From November 1

Finally some good news from the IT sector, Cognizant Technology Solutions today announced that approximately 80 percent of its eligible employees will receive merit-based salary hikes starting November 1.

The hikes will apply to employees up to the Senior Associate level and will be determined by individual performance ratings and regional differences. In India, consistent top performers are set to receive high single-digit increases, while the highest-rated employees will earn even larger raises.

Salary revisions were originally expected in August, but were deferred due to global macroeconomic challenges, including US tariff-related uncertainties. CFO Jatin Dalal noted this three-month delay as part of a cautious approach amid ongoing volatility.

The adjustment aligns with the company’s Q2 earnings guidance to extend wage hikes to a majority of employees in the second half of the year. Cognizant delivered strong financials for Q2, with revenue growth of 8.1 percent to $5.25 billion. Net profit rose 14 percent year-over-year to $645 million.

The workforce metrics are positive as well, with headcount rise to 343,800, and attrition eased to 15.2 percent. The company remains bullish on hiring, targeting 15,000–20,000 freshers in 2025 and launching AI upskilling efforts through a new learning center in Chennai.

This announcement follows a similar decision by Tata Consultancy Services (TCS) to hike salaries of its workforce, also after a delay, underscoring a broader effort among major IT players to stabilize talent retention amid industry headwinds. TCS, however, also announced a massive layoff of about 12,000 employees.

Cognizant’s long-awaited wage hike marks a positive pivot in a cautious IT environment. By rewarding performance and renewing its focus on India and AI-driven growth, the company is bolstering its workforce’s morale, and signaling optimism for the final half of 2025.

Published on: Thursday, August 14, 2025, 03:41 PM IST