Cognizant, one of the world’s leading IT services companies, has announced that nearly 80% of its eligible workforce will receive salary hikes effective November 1, 2025. The move, reported by Moneycontrol, follows the company’s earlier statement during its second-quarter earnings that most employees would see merit-based increments in the second half of the year.
The hikes will apply to employees up to and including the Senior Associate level, with the exact percentage determined by individual performance ratings and geographic location. In India, top performers are set to receive increases in the high single digits, while others will receive comparatively smaller adjustments.
This decision comes after months of speculation and uncertainty surrounding Cognizant’s increment cycle. Traditionally, the company initiates salary revisions from August 1, but the 2025 cycle was delayed due to global macroeconomic challenges, including U.S. tariffs that constrained client spending and project budgets.
Earlier this year, Cognizant rewarded most associates with their highest bonuses in three years, signalling a performance-oriented approach to compensation. The upcoming hikes continue that focus, rewarding productivity and results during a year of mixed global business sentiment.
The announcement is backed by the company’s strong financial results in the second quarter of 2025. Cognizant reported revenue of $5.25 billion, marking an 8.1% year-on-year growth, while net income climbed 14% to $645 million. Bookings rose 18%, with two mega-deals exceeding $1 billion each.
Given the robust performance, the company also revised its constant-currency revenue growth forecast for 2025 upward to 4–6% from the earlier 3.5–6% range, while maintaining its adjusted operating margin guidance at 15.5–15.7%.
Cognizant’s headcount rose by approximately 7,500 during the quarter, bringing the total to 343,800 employees, driven primarily by fresh hires in India. Meanwhile, attrition dropped to 15.2%, suggesting improved employee retention.
In addition to the salary hikes, Cognizant announced plans to invest in workforce development, with a new AI learning facility in Chennai aimed at upskilling employees in artificial intelligence and advanced digital technologies. The move underscores the company’s focus on future-ready skills as client demand evolves.
