Cognizant’s Annual Salary Hikes Plummet To 1%: Report

The company employs approximately 254,000 people in India, accounting for about 70 per cent of its workforce. During the quarter ending in June, Cognizant reported a reduction in its total headcount

Amidst controversy over offering the lowest pay packages to freshers in a decade, Cognizant Technology Solutions reportedly gave some employees annual salary hikes as low as 1 per cent. This comes as the global technology services giant implemented salary increments after a four-month delay.

According to The Economic Times report, citing sources, salary hikes at Cognizant Technology Solutions are reported to be as low as 1 per cent, with the highest increase being approximately 5 per cent.

“For a rating of 3, the hike is around 1-3 per cent while a 4 rating has been granted a 4 per cent hike and a 5 rating to an employee is paid an increment of around 4.5 per cent and at the most 5 per cent,” one of the sources said in the report.

Last year, Cognizant, a Nasdaq-listed company, offered its employees salary hikes in April ranging from approximately 7 per cent to 11 per cent.

However, the company has been criticised this year for offering a significantly lower salary increase. Recent reports indicate that salary hikes for some employees have been as low as 1 per cent, with the highest reaching up to 5 per cent. This development comes when Cognizant is already under fire for offering starting salaries of just Rs 2.52 lakh per annum (around Rs 21,000 per month) to fresh graduates through its off-campus recruitment drive beginning Wednesday. This modest salary offer has sparked considerable outrage on social media.

The company employs approximately 254,000 people in India, accounting for about 70 per cent of its workforce. During the quarter ending in June, Cognizant reported a reduction in its total headcount by 8,100, bringing the number of employees down to 336,300. This figure is 9,300 lower compared to the same period last year.

Despite its status as one of India’s major outsourcing firms with a global presence, industry experts suggest that Cognizant's latest salary package levels are reminiscent of those from 2002. This move has generated significant backlash, especially given the subdued economic climate.