NEW DELHI: IT services major Cognizant will roll out salary hikes for about 80% of its eligible employees effective November 1, 2025, the company said on Thursday. The move aligns with its second-quarter guidance to award merit-based increases to the vast majority of staff in the second half of the year.
The hikes will apply to employees up to the Senior Associate level, with the amount varying by country and individual performance. In India, consistent top performers will receive increases 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,” a company spokesperson said.
Nasdaq-listed Cognizant posted a 14% year-on-year rise in net income to $645 million for the quarter ended June 30, 2025, compared with $566 million a year ago. Revenue for the quarter grew 8.1% to $5.25 billion. The company maintained its 2025 adjusted operating margin guidance at 15.5–15.7%, an expansion of 20–40 basis points, and narrowed constant currency revenue growth guidance to 4–6%. Operating margin for the quarter stood at 15.6%.
CFO Jatin Dalal during the earnings call had said that the decision on salary increases had not been finalised earlier in the year, but the aim was “to cover a vast majority of our employees during the second half.”
Voluntary attrition fell to 15.2% in Q2 2025, from 15.8% in Q1 and 13.6% a year earlier. Headcount stood at 343,800 at the end of June, up 7,500 from both Q1 2025 and Q2 2024. The company plans to hire 15,000–20,000 freshers in 2025.
The announcement by Cognizant comes days after Tata Consultancy Services (TCS) said it would raise salaries for about 80% of its workforce from September 1, 2025, covering junior and mid-level staff. Reports suggest increments of 6–8% for offshore employees and 2–4% for onshore employees.
TCS’ pay hike followed its disclosure of plans to cut more than 12,000 jobs in FY26, primarily targeting middle and senior management — a first for an Indian IT major in recent years. The company cited structural changes, automation, and global macroeconomic pressures.
The job cuts have sparked concerns across the Indian IT industry, which is grappling with slowing global demand, geopolitical uncertainty, and the growing adoption of artificial intelligence. Wipro has yet to announce hikes for 2025, while Infosys, which implemented a wage increase earlier this year, has not decided on its next round.
Despite the headwinds, the latest pay revisions by Cognizant and TCS signal an effort to retain talent in a competitive hiring market and curb rising attrition.