Cognizant to hike wages of 80% employees in November after three-month delay, company says

Reuters

2 days ago

Aug 14 - Cognizant (CTSH.O), opens new tab will delay its annual wage hikes, with pay increases for about 80% of its global workforce now set to take effect on November 1, according to a company statement sent to Reuters in an email on Thursday.
India is a major hub for the IT firm with over two-thirds of its total employees, which are around 343,800. The annual wage hike was due in August but was delayed due to macroeconomic factors, CFO Jatin Dalal said last month, referring to tariff-related uncertainties. The employees were last awarded increments last August.
The Teaneck, New Jersey-headquartered firm's move comes a week after India's largest IT firm, Tata Consultancy Services (TCS.NS), opens new tab, announced its annual hike after a five-month delay.
"This (wage hike) aligns with its announcement during its second quarter earnings that it plans to award merit-based salary increases for the vast majority of employees during the second half of 2025," the company's email said.
The hikes will be delivered up to, and including, the senior associate levels, the company said, and will depend on individual performance ratings and countries.
The wage hike cycle for the remaining workforce has not been determined at this time, they said.
Last month, the company forecast third-quarter revenue above Wall Street expectations, owing to strong spending from customers looking to integrate artificial intelligence into their platforms.
The company forecast third-quarter revenue between $5.27 billion and $5.35 billion, compared with analysts' expectations of $5.27 billion, according to data compiled by LSEG.