Cognizant Announces Merit-Based Pay Hikes Amid Strong Quarterly Performance

Cognizant will implement salary hikes for 80% of its eligible employees starting November 1, 2025. The increments will be merit-based, impacting roles up to the Senior Associate level depending on performance and location. The IT firm reported a strong quarterly financial performance with 14% net income growth.

IT services giant Cognizant is set to increase salaries for 80% of its eligible workforce beginning November 1, 2025, as part of its merit-based pay model. The plan targets the majority of employees up to the Senior Associate level, with potential raises linked to individual performance evaluations and regional criteria.

During its recent earnings report, Cognizant revealed a better-than-expected net income rise of 14% year-on-year, reaching USD 645 million for the June quarter. The company attributed this success to its expanding AI solutions and successful mega deals, reassessing its full-year revenue growth forecast to a 4-6% range.

In comparison, Cognizant's direct competitor, Tata Consultancy Services, also announced similar wage hikes for 80% of its workforce. As the IT services sector experiences robust financial performance, these industry leaders underscore the strategic shifts needed to thrive in today's digital economy.

(With inputs from agencies.)