Cognizant to give hikes to 80% eligible employees from November
What's the story
Cognizant, a leading IT services company, has announced salary hikes for around 80% of its eligible employees. The increment will come into effect from November 1, bringing an end to months of uncertainty over the company's pay raise cycle. The decision was in line with the company's second-quarter earnings guidance that most employees would receive merit-based salary increases in the latter half of this year.
Increment details
Hikes depend on individual performance ratings
The salary hikes will be applicable to employees up to and including the senior associate level. The amount of these increases will depend on individual performance ratings and country of operation. In India, consistent top performers are likely to receive high single-digit pay hikes. A company spokesperson said earlier this year, most associates received their highest bonuses in three years.
Information
Increment delayed due to global macroeconomic headwinds
Cognizant usually begins its increment season on August 1. However, this year, the company delayed the decision owing to global macroeconomic headwinds. The delay is similar to most of Cognizant's peers, who are yet to announce hikes, except Tata Consultancy Services (TCS).
Workforce expansion
Freshers to comprise majority of new hires in 2025
In the June quarter, Cognizant added around 7,500 employees, taking its total headcount to 343,800. The company's attrition rate also 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 said this was one of the first quarters with significant headcount growth due largely to fresher hiring in India.