IT services giant Cognizant has announced salary hikes for around 80% of its eligible workforce, effective November 1, 2025. The long-awaited move brings clarity and assurance to employees after months of uncertainty over the company’s annual increment cycle.

The decision was confirmed during the company’s second-quarter earnings call, where Cognizant reiterated its commitment to awarding merit-based hikes to the vast majority of staff in the second half of the year. The hikes will apply to employees up to and including the Senior Associate level, with the quantum varying based on performance and location.

In India, consistent high performers can expect increases in the higher single-digit range, while top-rated employees are likely to receive the most significant raises. “Top performers will receive the highest increases,” a company spokesperson said, adding that earlier this year, most associates received their highest bonuses in three years, ranging from 85% to 115%.

Traditionally, Cognizant begins its increment cycle from August 1, but the decision was delayed this year due to global economic headwinds. Recent tariff actions by U.S. President Donald Trump have added to the uncertainty, particularly a 25% tariff on Indian goods effective August 7, and a similar penalty that was announced a day earlier, set to begin August 27 for purchasing Russian oil and arms.

These external pressures have led most Indian IT firms to tread cautiously, with Tata Consultancy Services (TCS) being one of the few to announce salary hikes from September 1.

Despite the challenging environment, Cognizant has remained focused on workforce expansion and retention. The Teaneck-headquartered firm added approximately 7,500 employees in the June quarter, pushing its total headcount to 343,800. Attrition also showed improvement, falling to 15.2% over the last 12 months.

Looking ahead, the company plans to hire between 15,000 and 20,000 freshers in 2025. CEO Ravi Kumar S noted that the June quarter marked one of the strongest periods for headcount growth, largely driven by fresher hiring in India.