For thousands of IT employees, appraisal season usually brings a mix of hope and expectation. But this time, the mood is different. Even as one of India’s top IT firms posts strong quarterly earnings, pay hikes remain on hold. The contrast between rising profits and delayed increments has sparked frustration, tough questions, and renewed debate about fairness, priorities, and employee morale in the tech industry.
Even as Cognizant claimed earnings of ₹5,600 crore in just 90 days, salary increases have apparently been delayed indefinitely. Despite the impressive financial performance, the move has led to annoyance and difficult inquiries about priorities, fairness, and the growing disparity between company earnings and employee benefits.
Why Did Cognizant Hold Salary Hike?
Cognizant has formally postponed its 2025 pay hikes, citing persistent macroeconomic uncertainties. Many employees are uncertain about when—or if—they will receive raises this year, as Chief Financial Officer Jatin Dalal noted that there is currently no set timeframe for employee increments.
Cognizant typically implements yearly raises on August 1, but most workers may have to wait much longer in 2025. The decision aligns with a broader trend in India’s IT industry, where companies are prioritizing cost management in the face of an uncertain global outlook.
Are Other Big IT Companies Following In Its Lead?
Cognizant is hardly the only company adopting a cautious approach this year. IT majors, including TCS, Wipro, and HCL Tech have also paused or postponed pay increases. Infosys remains the only Tier-I IT company that has raised wages so far.
This industry-wide reluctance has increased concerns around financial planning, job satisfaction, and morale among employees.
What Is Cognizant’s Financial Performance?
Cognizant’s strong financial performance stands in sharp contrast to the salary delay. The company exceeded market expectations in Q2 2025 by reporting a 14% increase in net profit to $645 million and an 8.1% rise in revenue to $5.25 billion.
Major acquisitions in financial services and health sciences—two sectors with steady demand despite global economic pressures—were key contributors to this growth.
Indeed, Cognizant also raised its full-year revenue growth forecast to 4–6%, up from the earlier estimate of 3.5–6%. This revision signals confidence in its deal pipeline, even as global businesses remain cautious about spending.
Does Cognizant Continue To Hire?
Despite delaying pay hikes, Cognizant continues to expand its workforce, with a strong focus on India. The company plans to hire 15,000 to 20,000 new employees this year after adding 7,500 workers in Q2 2025 alone.
Attrition also declined to 15.2%, pointing to improved employee retention compared to previous years.
Where Is Cognizant Investing?
Cognizant is intensifying its investment in long-term capabilities. To upskill employees in emerging areas such as generative artificial intelligence, digital platforms, and next-generation technologies, the company recently inaugurated a 21-acre AI-focused learning campus in Chennai.
Despite uncertainty around short-term salary growth, this move underscores Cognizant’s focus on future readiness and strategic transformation.
What Does This Signify For Workers?
Cognizant’s current strategy reflects a careful balancing act—controlling costs while continuing to invest in technology and talent. The company appears focused on resilience and long-term competitiveness, even though compensation increases remain on hold for now.
For employees, however, the wait continues. As long as macroeconomic uncertainties persist, many are left wondering whether strong business performance will eventually translate into better pay.
Conclusion
Cognizant’s decision highlights a growing tension in India’s IT sector: robust profits on one side and delayed employee rewards on the other. While companies prepare for future challenges through hiring and upskilling, employees are increasingly seeking reassurance that their efforts will be fairly recognised. The coming months will be critical in determining whether corporate confidence ultimately reaches those waiting for their long-overdue increments.
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