Cognizant announces pay hike for majority of staff effective 1 November

Cognizant Technology Solutions announced on Thursday that around 80% of its eligible employees will receive salary increases from 1 November 2025, continuing a policy of rewarding performance-based contributions across its global workforce.

The move was confirmed by a company spokesperson and reported by The Economic Times and CNBC-TV18. Cognizant stated that the increases will apply up to, and including, the Senior Associate level, with variations based on individual performance ratings and the country of employment.

The announcement aligns with Cognizant’s disclosure during its second-quarter earnings call earlier this year, when it had signalled plans to deliver merit-based hikes for the “vast majority” of employees in the second half of 2025.

“In India, pay increases for our consistent highest performers will be in the high single digits. Top performers will receive the highest increases. Earlier this year, Cognizant paid most of its associates their highest bonuses in three years,” the spokesperson was quoted as saying by CNBC-TV18.

Cognizant has a significant workforce in India, employing more than 250,000 people in the country—its largest employee base globally. The company has said India will remain central to its growth strategy, even as it continues to expand across North America and Europe.

The decision comes at a time of heightened focus on compensation and retention strategies in India’s IT services sector, where firms have faced rising attrition, intense competition for digital skills, and pressures from global clients to improve delivery efficiency.

Industry leader Tata Consultancy Services (TCS) also announced a wage hike for around 80% of its employees, effective 1 September 2025, according to The Hindu BusinessLine. That decision followed shortly after TCS revealed plans to lay off approximately 12,000 employees as part of a restructuring effort.

Unlike TCS, Cognizant has not announced any mass layoffs in recent months, though it has undertaken selective workforce realignment in certain geographies.

The salary adjustments will be effective just ahead of Cognizant’s fiscal year-end, a period often marked by strategic workforce and budget decisions. For employees, the hikes build on a strong bonus cycle earlier in 2025, which Cognizant said was the most generous in three years.

As global IT majors continue to recalibrate their compensation policies, Cognizant’s approach underscores its intent to retain talent, reward performance, and position itself competitively in a fast-evolving digital services market.