Cognizant Delays Salary Hikes Again! Employees to Wait Until August

Cognizant has once again delayed its salary hikes, pushing the increments to August 2025 instead of the usual March timeline. This marks the second consecutive year the IT giant has postponed pay raises, affecting thousands of employees worldwide. While bonuses will still be distributed in March 2025, employees will have to wait five additional months for their salary increases.

This decision aligns with an industry-wide trend where IT services firms are adopting cost-cutting measures in response to economic uncertainties. Employees at Cognizant are left wondering about the financial impact of this delay and what it means for their future growth.

Cognizant Delays Salary Hikes Again

Cognizant’s decision to delay salary hikes until August 2025 is a significant development affecting thousands of employees. While bonuses will still be awarded in March, the postponement reflects broader industry trends amid economic uncertainty. Employees must now focus on financial planning, career growth, and upskilling to stay competitive in the evolving IT landscape.

For those impacted, it’s crucial to stay informed, explore opportunities, and adapt to industry shifts. The coming months will be critical in determining how Cognizant balances employee satisfaction and business strategy.

Why is Cognizant Delaying Salary Hikes?

The IT industry has been experiencing economic slowdowns, client budget cuts, and project deferrals. As a result, many major players, including TCS, Infosys, and Wipro, have been cautious about salary increments. Here are the key reasons Cognizant has delayed its salary hikes:

1. Economic Slowdown & Cost Management

• The global economic downturn has impacted the IT sector, leading to lower revenue growth.
• Companies are prioritizing operational efficiency over salary increments.
• Inflation and fluctuating exchange rates have affected profitability.

2. Industry-Wide Pay Adjustment Trends

• TCS: Provided a 4.5-7% hike in April-June 2024, staying ahead of competitors.
• Infosys: Salary hikes have been staggered and distributed in phases.
• HCLTech: Delayed increments for specific employee levels.

3. Cognizant’s Business Strategy & Priorities

• Cognizant is focusing on AI-driven solutions and digital transformation.
• Investments in emerging tech are prioritized over immediate employee compensation.
• The company wants to maintain a strong financial position while navigating uncertain market conditions.

How Are Employees Reacting?

The announcement of the salary hike delay has generated mixed reactions among Cognizant employees:

1. Frustration and Uncertainty

• Many employees expected a salary increment to manage inflation and cost of living.
• Employees feel that delays in salary hikes impact long-term financial goals.

2. Job Market Considerations

• Some professionals are actively looking for better-paying jobs.
• Employees with in-demand skills (AI, cybersecurity, cloud computing) may switch to competitors.

3. Mixed Reactions from Management

• Team leads and managers understand the financial constraints but also struggle with team morale.
• Some employees believe Cognizant should have planned better to ensure timely hikes.

Impact on Cognizant Employees

The delayed salary hike impacts employees in multiple ways:

1. Financial Planning Disruptions

Employees expecting incremented salaries to manage loans, mortgages, or daily expenses must now reassess their budgets. The five-month delay can lead to:

• Increased financial strain
• Re-evaluation of spending habits
• Potential job switches to secure better pay

2. Employee Morale and Retention Challenges

A delay in salary hikes can lead to:

• Dissatisfaction and demotivation
• Higher attrition rates, as employees may look for better-paying opportunities
• A perception that loyalty is not rewarded

3. Career Growth Concerns

Employees who depend on consistent salary increments for career progression may feel:

• A slower career trajectory
• Uncertainty about future raises and promotions
• A need to upskill or switch to higher-paying roles

What Should Cognizant Employees Do Next?

If you’re affected by the delay, here’s how you can stay ahead:

1. Explore Alternative Career Growth Options

• Consider upskilling in high-demand areas like AI, cloud computing, and cybersecurity.
• Leverage online certifications from platforms like Coursera and Udemy.
• Seek internal opportunities that offer higher pay or bonuses.

2. Plan Financially for the Next Few Months

• Create a budgeting strategy to manage expenses without the expected salary hike.
• If necessary, explore side gigs or freelancing for additional income.
• Consider investment options that provide passive income.

3. Stay Informed & Engage with Leadership

• Attend company town halls for updates on salary structures.
• Provide feedback through internal HR channels.
• Network with colleagues to understand industry trends and job opportunities.

Frequently Asked Questions (FAQs)

1. Why is Cognizant delaying salary hikes again?

Cognizant cites economic uncertainty, industry trends, and financial planning as reasons for the delay. They are prioritizing business investments over immediate salary increments.

2. Will employees still get bonuses in 2025?

Yes, Cognizant has confirmed that eligible employees will receive bonuses in March 2025. eLetters detailing bonus amounts will be distributed by March 10, 2025.

3. How does Cognizant’s salary hike delay compare to competitors?

TCS provided timely hikes (4.5-7%), while Infosys and HCLTech have delayed or staggered increments. Cognizant is not alone in postponing pay raises.

4. What should employees do to mitigate financial impact?

Employees should focus on budgeting, upskilling, and exploring career growth opportunities within or outside Cognizant.

5. When will the new salaries take effect?

Salary hikes will take effect starting August 1, 2025.