By Kavita Mistry 
Cognizant Technology Solutions will roll out salary hikes to 80% of its eligible workforce effective November 1, 2025, after deferring them earlier this year. The hikes will apply up to the Senior Associate level, with amounts varying by performance rating and location. In India, top performers will receive increases in the high single digits percentage range.
Performance-Driven Approach
The company confirmed that the highest performers will receive the largest payouts, aligning with its Q2 earnings announcement to award merit-based salary hikes to the majority of employees in the second half of the year. Last year, increments were also delayed but implemented in August, ranging from 1–5%.
Industry Context
Cognizant’s decision comes amid mixed actions by IT peers. TCS has indefinitely deferred hikes due to weak demand and macroeconomic headwinds, while Infosys granted raises in April but has yet to confirm the next cycle. Wipro is taking a wait-and-see approach, assessing the demand environment before deciding on salary revisions.
Financial Performance and Hiring
In Q2 2025, Cognizant reported a 14% year-on-year jump in net profit and an 8.1% rise in revenue to $5.25 billion, exceeding forecasts. The company raised its full-year revenue guidance to $20.7–21.1 billion, reflecting growth of 4.7–6.7% driven partly by acquisitions.
Despite industry uncertainties, Cognizant added 7,500 employees—mostly freshers—bringing its headcount to 343,800. CEO Ravi Kumar S noted this marks one of the first quarters of sequential headcount growth, with a goal to hire 15,000–20,000 freshers in 2025.
Employee Rewards Strategy
Earlier this year, the company awarded most associates their highest bonuses in three years. CFO Jatin Dalal emphasised the company’s commitment to covering the vast majority of employees in the 2025 pay cycle, reinforcing its focus on performance-linked rewards.
60-Word Summary:
Cognizant will grant salary hikes to 80% of eligible staff from November 1, 2025, focusing on top performers who may receive high single-digit raises in India. Despite delays, the decision follows strong Q2 results with 14% profit growth and increased revenue guidance. The company is also expanding headcount, targeting 15,000–20,000 fresher hires in 2025 amid industry uncertainty.