IT services giant Cognizant will roll out salary increases to roughly 80% of its eligible workforce starting November 1, 2025. During its second-quarter earnings announcement, the company had earlier confirmed plans to grant merit-based pay hikes to most employees in the latter half of 2025.
A company spokesperson informed PTI that the salary increases will apply to employees up to the Senior Associate level. The percentage of the hike will depend on individual performance as well as the employee’s location.
In India, steady high performers are expected to see raises in the higher single-digit range, while exceptional performers are likely to receive the most substantial increments, the spokesperson added.
“These increases will be delivered up to, and including, the Senior Associate levels. The amount of these increases will vary depending on individual performance rating and country,” a Cognizant spokesperson said.
Cognizant net profit:
Cognizant, listed on the Nasdaq, reported a 14% year-on-year increase in net profit, reaching $645 million for the quarter ending June 30, 2025, up from $566 million in the same period last year. Quarterly revenue climbed 8.1% to $5.25 billion.
The company reaffirmed its adjusted operating margin forecast for 2025 at 15.5–15.7%, reflecting an improvement of 20–40 basis points, and tightened its constant currency revenue growth outlook to 4–6%. For the quarter, the operating margin came in at 15.6%.
TCS to Hike Pay for Nearly 80% of Employees:
Cognizant’s announcement follows closely on the heels of Tata Consultancy Services (TCS) revealing plans to increase salaries for nearly 80% of its staff effective September 1, 2025, targeting junior and mid-level roles. According to reports, offshore employees are expected to receive hikes in the range of 6–8%, while onshore employees may see increases of 2–4%.
Wipro has not yet disclosed its plans for salary hikes in 2025, whereas Infosys, which rolled out a pay raise earlier this year, is still undecided on the timing of its next increment cycle.
