Cognizant to Offer Salary Hike to 80% of Employees Starting November 2025

Cognizant plans to offer a pay hike to around 80% of its employees, effective November 1, 2025. The increases will be up to the Senior Associate levels and will vary depending on individual performance rating and country. In India, pay increases for top performers will be in the high single digits. This move follows TCS's wage hike for about 80% of its employees, effective September 1.

Cognizant Technology Solutions Corp (CTSH.O) has announced that it will provide a pay hike to approximately 80% of its eligible employees, effective November 1, 2025. The increases will apply up to the Senior Associate levels and will be based on individual performance ratings and regional differences [1].

The hikes come after a three-month delay, originally scheduled for August. The delay was attributed to global macroeconomic challenges, including US tariff-related uncertainties [1]. This move aligns with Cognizant's Q2 earnings guidance to extend wage hikes to a majority of employees in the second half of the year [2].

In India, top performers are expected to receive high single-digit increases, while the highest-rated employees will earn even larger raises. The company's workforce metrics remain positive, with headcount rising to 343,800 and attrition easing to 15.2% [2].

Cognizant's decision to reward performance and renew its focus on India and AI-driven growth signals optimism for the final half of 2025. This follows a similar decision by Tata Consultancy Services (TCS), which also deferred its wage hikes but announced a massive layoff of about 12,000 employees [3].

The company reported a nearly 14% increase in net profit for the April to June quarter, with a revenue boost of 8.1% from a year earlier to $5.25 billion, beating its own forecast [3]. Cognizant aims to cover a vast majority of its employees during the second half of this year for salary hikes [3].

References:
[1] Reuters. (2025, August 14). Cognizant hike wages 80% employees November after three-month delay. Retrieved from https://www.reuters.com/business/world-at-work/cognizant-hike-wages-80-employees-november-after-three-month-delay-company-says-2025-08-14/
[2] Free Press Journal. (2025, August 14). Good news from the IT sector: Cognizant to roll out salary hikes for 80% of eligible staff from November 1. Retrieved from https://www.freepressjournal.in/tech/good-news-indian-it-firm-cognizant-to-roll-out-salary-hikes-for-80-of-eligible-staff-from-november-1
[3] Economic Times. (2025, August 14). Cognizant to roll out wage hikes for 80% of eligible employees effective Nov-1. Retrieved from https://m.economictimes.com/tech/information-tech/cognizant-to-roll-out-wage-hikes-for-80-of-eligible-employees-effective-nov-1/articleshow/123296307.cms