The move comes as IT peers tread cautiously amid slowing revenue growth and global macroeconomic challenges.
Cognizant will reportedly hike salaries of around 80% of eligible employees from November 1. The decision follows the company’s earlier guidance during its Q2 earnings that most staff would receive merit-based raises in the second half of the year.
The hikes will apply to employees up to and including the senior associate level, with increments based on performance ratings and location. In India, consistent top performers are set to receive high single-digit increases, according to reports.
“Top performers will receive the highest increases,” a company spokesperson said, noting that earlier this year, most associates earned their biggest bonuses in three years.
IT Increment Season Rolls In
Cognizant, which typically begins its increment season on August 1, delayed the move this year amid global macroeconomic headwinds, including US President Donald Trump’s tariff measures that have impacted client tech budgets. Most peers have also held back hikes, with TCS being a notable exception.
Last week, India’s largest IT services firm, Tata Consultancy Services (TCS) announced a wage hike for nearly 80% of its workforce, just months after laying off 12,000 workers. TCS had said that the move was crucial for it to become a “future-ready organisation” through strategic investments in AI, technology, market expansion, and enhanced client delivery models.
TCS had previously stated that reskilling and redeployment efforts were ongoing, but some roles, particularly those without viable redeployment opportunities, would be phased out.
IT Sector Watch
Mixed earnings and US President Donald Trump’s proposed 50% tariff on Indian goods have dragged broader markets over the past few weeks. The Nifty IT index has trimmed 7.4% over the past month. Indian software services companies reported a slowdown in earnings for the first quarter of fiscal 2026.
Mixed earnings and US President Donald Trump’s proposed 50% tariff on Indian goods have dragged broader markets over the past few weeks. The Nifty IT index has trimmed 7.4% over the past month. Indian software services companies reported a slowdown in earnings for the first quarter of fiscal 2026.
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