The season for increments has already started for the Information technology (IT) major Cognizant, as its employees will see an average salary increase of up to 10 per cent this year.
Increments For Cognizant Employees
Not only Cognizant, the New Jersey-headquartered software services firm also started giving annual pay hikes to its staff on Monday.
This list includes names of its peers such as Tata Consultancy Services (TCS) and Wipro.
They have started rolling out merit salary increases (MSI) in the face of increasing macroeconomic headwinds and a tight labor market.
Prior to this, Cognizant conveyed to its employees that “formal eLetters” with the new salary package would be out through the week, last week.
These hikes will take effect from October for levels up to associate director, as per the report.
Local Worker Law Affecting Salary Hikes In Germany And France
Cognizant noted that its employees in Germany and France may have to wait a bit more to get new salary hike letters because of local worker law rules.
Coming to the pay hikes, media reported that it would be in the range between 7 percent and 10 percent, according to the people familiar with the matter.
In the meantime, the IT majors voluntary attrition levels climbed to 31 percent in the quarter ended June 30.
It is noteworthy here that the calculations at Cognizant include BPO, trainees and corporate associates, as highlighted by the company executives further emphasizing the metric has been largely in line with the industry standards.
Besides this Cognizant started an internal job moves programme in June last year.
Through this programme, 33,000 staff switched roles within the company.
Joining the league, Indian peers have rolled out salary increases recently.
100% VPI For TCS Staff
India’s largest IT company, TCS last week said it would award 100 percent variable pay for 70 percent of its staff bringing in the festive cheer early.
In the same line, Wipro announced the annual increments for eligible employees for the financial year ending 2022 during September this year.
In another development, the media reported that record salary hikes given out by IT majors over the last two years are likely to drop in the next fiscal year.
This will be caused by the global slump that is compelling companies to balance hiring against rising expenses.
[…] the footsteps of its peers including Tata Consultancy Services (TCS), Infosys, and Wipro, IT giant Cognizant has chosen to implement annual compensation increases for its […]