Cognizant to Give Salary Hike to 80% of Employees from November, Indian Employees to Get Diwali Gift

In a surprising move amid industry layoffs, global IT giant Cognizant Technology Solutions, a US-headquartered company of Indian origin, has announced it will increase salaries for 80% of its eligible employees starting November 1, 2025. This announcement comes as a significant positive for many, especially when other Indian IT leaders like TCS have recently announced large-scale layoffs and deferred salary hikes due to economic uncertainty.

Details of the Salary Increase

• The hike will primarily benefit employees up to the senior associate level.

• Salary increments will be merit-based and vary according to individual performance and local market conditions.

• Top-performing employees in India are expected to receive the highest raises within this range.

• Salary increases are projected to be in the high single digits, around 7-9%.

• Last year, Cognizant had postponed hikes and given minimal increases of 1-5% in August; this year’s bigger hike marks a turnaround.

Context in the IT Industry

This decision contrasts with other major Indian IT firms:

• Tata Consultancy Services (TCS) recently announced layoffs of about 12,000 employees (2% of its workforce) and deferred salary hikes citing uncertain business demand.

• Infosys gave a salary hike earlier in April 2025, but the next raise is still undecided.

• Wipro is awaiting market clarity before deciding on salary increments.

Company Performance and Growth Plans

• In the April-June quarter, Cognizant reported a strong performance with a 14% rise in net profit and 8.1% revenue growth year-over-year to $5.25 billion.

• The company raised its annual revenue guidance to $20.7-$21.1 billion, signaling confidence with an expected growth of 4.7% to 6.7%.

• Cognizant boasts a large Indian workforce, with 70% of its employees based in India.

• The company has added 7,500 employees in the recent quarter, mostly freshers, increasing total headcount to approximately 343,800.

• CEO Ravi Kumar S confirmed that recruitment is part of a strategic plan to hire 15,000 to 20,000 freshers in 2025 in India.