On Thursday, IT services firm Cognizant announced that approximately 80% of its eligible workforce will receive salary hikes effective from November 1, 2025. This follows the company’s earlier indication during its Q2 earnings that merit-based increments would be rolled out in the latter half of the year. These hikes will apply to roles up to the Senior Associate level, with the percentage varying based on employee performance and location. In India, consistent high performers can expect salary increases in the high single digits. The company also highlighted that earlier in 2025, most associates received their best bonuses in the last three years.
Meanwhile, Tata Consultancy Services (TCS), India’s largest IT services provider, announced salary revisions for about 80% of its employees, mainly those at junior and mid-levels. The hikes, effective from September 1, 2025, were conveyed in an internal communication by top HR leaders. This move comes even as TCS plans to reduce its workforce by around 12,000 employees, or 2%. The IT industry, including firms like TCS, has been grappling with slower revenue growth due to global economic uncertainty and geopolitical tensions.