Cognizant Technology Solutions has announced a delay in its annual salary hikes, pushing them to August 2025, marking the second consecutive year of postponements. While employees will have to wait longer for raises, the company has assured that bonuses will be paid on time in March.
Salary Hikes Pushed to August
Traditionally, Cognizant rolls out salary increases in March, but under CEO Ravi Kumar S., the company has adjusted its compensation cycle. The salary hikes, originally expected in March 2025, will now take effect in August 2025. This mirrors last year’s decision, where increments were also deferred by five months.
The delay comes amid economic uncertainties and financial realignments in the IT sector. Other tech giants, including TCS, Infosys, and HCLTech, have also staggered or delayed salary increments in response to market conditions.
Bonuses to Be Paid in March
Despite the delay in pay hikes, Cognizant has reassured employees that bonuses will be distributed on schedule in March 2025. Employees can expect to receive their bonus letters by March 10.
CEO Ravi Kumar S. addressed the workforce, emphasizing that while hikes are postponed, the company remains committed to rewarding performance and maintaining competitive compensation packages.
Employee Attrition and Industry Trends
Cognizant has been grappling with higher voluntary attrition rates compared to some of its industry rivals. As of December 2024, the company reported an attrition rate of 15.9%, a jump from 13.8% the previous year.
In contrast, competitors have reported lower attrition rates:
- TCS: 13%
- Infosys: 13.7%
- HCLTech: 13.2%
The rise in attrition suggests that employees may be seeking better opportunities elsewhere amid delayed raises and changing industry trends.
Cognizant’s Strategic Focus
The decision to postpone salary hikes aligns with Cognizant’s broader strategy to navigate economic headwinds while focusing on growth and innovation. The company is actively investing in artificial intelligence and digital transformation to strengthen its market position.
With salary hikes delayed but bonuses intact, Cognizant is trying to strike a balance between financial stability and employee retention. However, with rising attrition and competition in the IT job market, it remains to be seen how this move will impact the company’s workforce in the long run.
