Cognizant starts 10% salary hike rollout for employees
Information technology (IT) giant Cognizant has started giving its employees its promised 10% salary hike this year.
According to a report in Economic Times, the firm conveyed to its employees last week that “formal eLetters” with the new salary package would be out, with the hikes taking effect from October for levels up to associate director.
However, the company mentioned that its employees in Germany and France might have to wait a bit more to get new salary hike letters because of local worker law rules.
Cognizant is the latest IT firm to provide merit salary increases (MSI) amid increased macroeconomic headwinds and a tight labor market.
Last week, Tata Consultancy Services (TCS) announced that 70% of its employees would receive 100% variable pay while the remaining 30% would get paid based on their business unit performance.
Similarly, Wipro CEO and MD Thierry Delaporte said the company would pay out 100% of variable pay to 85% of its employees for the second quarter of FY2023.
Speaking at a press meet following the second quarter results, he also said the company had promoted more than 10,000 employees and increased salaries across bands.
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