Appraisals Coming! Cognizant to Roll Out Salary Hikes for 80% of Eligible Employees from November 1, 2025

Amid a turbulent global tech environment, IT services major Cognizant announced on Thursday that around 80% of its eligible employees will receive salary hikes effective November 1, 2025. The development comes after the company had hinted during its second-quarter earnings call about plans to implement merit-based salary increases for the majority of its global workforce in the second half of the year.

Salary Hikes in Cognizant Based on Performance and Location

"These increases will be delivered up to, and including, the Senior Associate levels," a Cognizant spokesperson said in a formal statement. "The amount of these increases will vary depending on individual performance rating and country," the company added, confirming that the hikes are performance-linked and will differ based on geography and internal evaluations.

Will Cognizant India Employees Receive Salary Hikes in 2025?

Notably, top-performing employees in India, Cognizant's largest talent base will be eligible for hikes in the high single digits, according to the spokesperson. The highest-rated employees are expected to benefit the most from the upcoming salary adjustments. This announcement is seen as a morale booster, especially after Cognizant awarded its largest bonus payouts in three years earlier this year to most associates.

Cognizant Increment Cycle Delayed Amid Economic Uncertainty

Cognizant typically initiates its annual salary revision cycle from August 1, but this year the process was delayed due to global macroeconomic headwinds. One of the key contributing factors to the delay has been US President Donald Trump's renewed tariff actions, which have created uncertainty in tech spending by clients, particularly in North America, Cognizant's biggest market.

According to multiple reports, industry insiders note that Cognizant is not alone in postponing salary hikes in 2025. Most Indian IT peers have also held back on increments amid slowing demand, margin pressures, and geopolitical tensions. Among major players, only Tata Consultancy Services (TCS) has announced and implemented salary increases so far this year.

Despite the delay, Cognizant's commitment to performance-based pay hikes is seen as a positive signal for the IT job market, which has faced increased uncertainty amid layoffs, shifting visa policies, and tighter spending by global clients.

Cognizant employs over 350,000 people globally, with a significant portion based in India, working across services including cloud, digital engineering, enterprise solutions, and consulting. The November pay hikes will likely impact tens of thousands of employees in India across various delivery centers.