IT services major Cognizant has announced that approximately 80% of eligible employees will receive salary hikes effective November 1, 2025, reaffirming its commitment to performance-based rewards and talent retention.
The annual increment cycle was originally scheduled for August but faced a three-month delay.
This postponement was due to macroeconomic factors, including uncertainties related to tariffs.
The hikes will apply to employees at or below the Senior Associate level.
The exact amount will vary depending on individual performance ratings and geographic location.
In India, consistent top performers are expected to receive high single-digit increases, while others will see more modest adjustments.
Performance Recognition and Bonus History
Cognizant’s spokesperson emphasized that top performers will receive the highest increases, aligning with the company’s broader strategy of rewarding excellence.
Earlier this year, most associates received their highest bonuses in three years, signaling a renewed focus on performance-linked compensation.
The announcement comes shortly after Cognizant reported a strong Q2 earnings performance, with revenue rising 8.1% year-on-year to $5.25 billion and net income increasing 14% to $645 million.
The company also recorded $27.8 billion in bookings over the past 12 months, including two major deals exceeding $1 billion each.
Cognizant Talent Expansion and AI-Focused Reskilling
Cognizant added 7,500 employees in the latest quarter, bringing its total headcount to 343,800, with a significant portion based in India.
The company plans to onboard 15,000 to 20,000 freshers in 2025, reflecting its continued investment in workforce expansion.
In parallel, Cognizant is making a $1 billion investment in Artificial Intelligence (AI) to prepare its talent for the evolving digital landscape.
The company is developing AI Labs and creating tailored solutions to meet specific client needs.
It is also introducing a hybrid workforce model that integrates human employees with digital agents.
President of the Americas, Surya Gummadi, noted that the future of work will involve a dynamic interaction between human and digital agents.
He emphasized that while existing roles may evolve, they will not become obsolete.
Cognizant is also collaborating with Google and academic institutions to train 200,000 employees in AI technologies.
Wage Hike Cycle and Future Outlook
The wage hike announcement ends months of uncertainty around Cognizant’s increment cycle.
The current hikes will benefit a large portion of the workforce. However, the timeline for salary revisions for the remaining employees is yet to be finalized.
Cognizant’s leadership has stated that the company will keep a close watch on economic conditions. Future compensation decisions will also be shaped by evolving client demand.
The company has built a strong financial foundation and is prioritizing digital transformation.
This strategic focus is helping it prepare to lead the next phase of growth in IT services.
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