Cognizant Grants Minimal Salary Hikes Amid Controversy Over Low Pay for New Hires

Cognizant Technology Solutions has come under scrutiny after implementing annual salary increases as low as 1% for some employees. According to a report by The Economic Times, the company has granted raises ranging from 1% to 5% following a four-month delay.

The increment details vary based on employee performance ratings. Those rated with a performance score of three received salary increases between 1% and 3%, while employees with a rating of four saw a 4% hike. The top performers, rated five, earned increments of around 4.5% to 5%.

This adjustment comes after Cognizant’s April 2023 salary revisions, which were more substantial, ranging between 7% and 11%. However, the company now faces criticism for its starting salaries, which have been reported as low as Rs 2.52 lakh per annum for new hires recruited through off-campus drives. This low pay scale has sparked significant debate on social media, highlighting concerns about compensation levels for entry-level positions.

Cognizant, with approximately 254,000 employees in India—representing about 70% of its global workforce—recently reported a reduction in total headcount. The company reduced its global workforce by 8,100, bringing the total number of employees to 336,300 as of the end of the June quarter.

The recent salary adjustments and criticisms reflect ongoing challenges for Cognizant as it navigates employee compensation and recruitment strategies in a competitive market.