Cognizant Announces Salary Hikes as Low as 1% Amid Ongoing Fresher Package Controversy: Report
Cognizant Announces Salary Hikes as Low as 1% Amid Ongoing Fresher Package Controversy: Report
Cognizant Salary Increments 2024 — Cognizant, the Nasdaq-listed IT company headquartered in New Jersey, recently rolled out annual salary hikes for its employees, with some increments reported to be as low as 1%, according to an August 15 report by the Economic Times. This comes amidst controversy over the company’s reportedly low salary packages offered to freshers, a move that has garnered significant attention.
The salary increments, which vary based on employee performance ratings, have seen a noticeable decline compared to the previous year. Employees with a 3-rating received increments ranging from 1% to 3%, while those with a 4-rating received a 4% increase. Top performers with a 5-rating saw hikes between 4.5% and 5%. In contrast, last year’s increments ranged from 7% to 11%, awarded in April. This year, however, the salary hikes were delayed by four months.
Cognizant, which has 70% of its workforce in India, amounting to approximately 254,000 employees, reported a year-on-year net profit growth of 22.2% for the second quarter ending in June 2024, reaching $566 million. Despite this profit growth, the company’s revenue slightly declined by 0.7% year-on-year, standing at $4.85 billion.
Cognizant CEO Ravi Kumar S. highlighted the company’s achievements during the second quarter, stating, “In the second quarter, we delivered revenue above the high end of our guidance range, expanded adjusted operating margin, and maintained our large deal momentum.” He also emphasized that progress against strategic priorities is creating new opportunities and driving long-term shareholder value.
