Cognizant's annual salary hikes only 1%, increments deferred by 4 months: Report
Cognizant offered hikes are as low as 1% and the highest is said to be 5%, it was reported.
Cognizant Technology Solutions is said to have handed out annual salary hikes as low as 1% to some of its employees, it was reported amid controversy over the company offering decadal-low pay packages to freshers. The company rolled out increments after deferring them by four months, Economic Times reported citing people in the know. The hikes are as low as 1% and the highest is said to be 5%, the report added.
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An unnamed source told the outlet, “For a rating of 3, the hike is around 1-3% while a 4 rating has been granted a 4% hike and a 5 rating to an employee is paid an increment of around 4.5% and at the most 5%."
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In 2023, the company granted salary hikes to its employees in April, ranging from approximately 7% to 11%. This comes at a time when the company has been criticised for offering decadal-low starting salaries of ₹2.52 lakh per annum to freshers through its off-campus recruitment drive. The salary offer has created a stir across social media platforms.
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The company has around 254,000 employees, or about 70% of its total headcount, in India. It has reported a reduction in its total headcount by 8,100 to 336,300 during the quarter ended June.
Meanwhile, in its second quarter ended June Cognizant posted a 22.2% year-on-year (YoY) and 3.6% sequential growth in net profit at $566 million.