Cognizant to Hike Salaries for Majority of Employees from November 1

Bengaluru – IT services giant Cognizant announced that it will increase salaries for the majority of its employees effective November 1, 2025, ending months of uncertainty after wage revisions were delayed earlier this year due to macroeconomic concerns.

Key Highlights

• 80% of eligible employees will receive pay hikes, mainly covering junior to senior associate levels.
• Increases will be merit-based and vary by performance ratings and country, with top performers in India expected to see high single-digit hikes.
• Senior and C-suite executives, comprising roughly 20% of staff, may receive increments depending on business unit and company performance.
• Cognizant added 7,500 employees in Q2 2025, bringing its total headcount to 343,800, including fresh engineering graduates from India.

Context and Comparison

• Last year, Cognizant’s hikes ranged 1-5%, while bonuses are now decoupled from salary increases.
• CEO Ravi Kumar deferred salary revisions earlier in 2025, with CFO Jatin Dalal citing a long-term approach balancing employee investment and business growth.
• Following TCS’ announcement of salary hikes from September 1, attention now turns to Wipro, which typically implements increases from September.

Impact on IT Sector

With Cognizant joining TCS in revising compensation, most major Indian IT services firms are aligning salary adjustments to retain talent and maintain competitiveness amid ongoing market pressures.