Cognizant to hike salaries for majority of employees starting November 1, aligning with industry norms.

Cognizant will raise salaries for 80% of its eligible employees from November 1, aligning with the policies of other IT companies. The amount of the increase will vary based on individual performance rating and country, with the highest performers in India receiving high single-digit pay hikes. This decision comes after the company delayed salary hikes earlier this month due to macroeconomic headwinds.

IT services giant Cognizant Technology Solutions has announced a significant salary increase for approximately 80% of its eligible employees, effective November 1, 2025. This move aligns with the policies of other major IT companies in the sector, including Tata Consultancy Services (TCS), which has also implemented wage revisions for a substantial portion of its workforce.

During its second-quarter earnings call, Cognizant confirmed that the salary increases will be delivered up to and including the Senior Associate levels, with the amount varying depending on individual performance ratings and country-specific factors [1]. Consistent top performers in India are expected to receive pay hikes in the high single-digit range, while the highest performers will receive the most significant raises.

The company's decision to implement these salary hikes comes after it deferred earlier plans due to macroeconomic headwinds. In March 2025, Cognizant paid one of the highest bonuses to its associates in three years, with bonuses ranging from 85% to 115% [2]. This indicates the company's commitment to rewarding its employees' performance, despite the challenging economic environment.

Cognizant's announcement follows a similar move by TCS, which recently announced salary hikes for 80% of its employees, effective September 1, 2025. However, TCS has also faced economic uncertainties, leading to a decision to defer salary increases for the current year [3].

Cognizant's financial performance has been robust, with a nearly 14% increase in net profit and an 8.1% revenue boost for the April to June quarter. The company has also raised its full-year revenue guidance to $20.7-21.1 billion, reflecting a 4.7-6.7% growth backed by inorganic growth [2].

References:
[1] https://www.news18.com/business/cognizant-salary-hike-2025-it-firm-to-roll-out-wage-hikes-for-80-of-eligible-employees-effective-november-1-9504753.html
[2] https://m.economictimes.com/tech/information-tech/cognizant-to-roll-out-wage-hikes-for-80-of-eligible-employees-effective-nov-1/articleshow/123296307.cms
[3] https://www.business-standard.com/companies/news/cognizant-hike-employees-november-second-quarters-earning-call-tcs-125081400810_1.html