Skip to main content
The Entrepreneur Story
NEWS·1 min read·May 14, 2026

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 emplo

Aerial shot of a well-maintained baseball field in Grant neighborhood, Sacramento, during the day.
Aerial shot of a well-maintained baseball field in Grant neighborhood, Sacramento, during the day. · Plate 01 · Photographed for The Entrepreneur Story

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.

operatorsfounders2026
No. The desk answers

Reader questions.

About Cognizant Grants Minimal Salary Hikes Amid Controversy Over Low Pay for New Hires — five of the most-asked, in the desk's own words.

  1. 01What is this story about?
    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 emplo
  2. 02Who wrote it?
    The Entrepreneur Story · Staff. 1 min read · May 14, 2026.
  3. 03Is this sponsored?
    If a piece is, the disclosure sits above the cover image and again in our public transparency report. This one carries no commercial disclosure.
  4. 04How do I get the rest?
    Subscribe to The Briefing for a Wednesday letter from the desk, or browse by category from the top navigation.

Continue reading

Legend of Toys co-founders Afshaan Siddiqui (left) and Vinay Jaisingh holding RC drift cars, in front of a comic-book mural of cars.
Startup News

Legend of Toys raises ₹21 Cr to play for keeps.

Kovon co-founders Bibartan Roy (left) and Swayamjeet Das, head-and-shoulders portrait.
Startup News

Kovon raises $250K to fix a broken pipeline.

BabyBillion brand illustration — the BabyBillion logo on a cloud with a rainbow, against a blue sky
Startup News

BabyBillion tops global YouTube charts for seven straight weeks.