Following in 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 staff.
Increments Announcement For Cognizant Employees
The Cognizant employees may receive an average compensation boost of up to 10% this year, as per the information provided by those with knowledge of the situation.
Media reported last week that the Higher Jersey-based software company informed its staff last week that they would be receiving “official eLetters” with the new salary throughout the week.
Reportedly, these raises will be taking effect from October for levels up to associate director.
In the financial year 2021-22, IT major Cognizant handed out promotions to around 42,000 employees and spent millions on salary hikes.
During this time, the New Jersey-headquartered software services firm spent $130 million (over Rs 1000 crore for merit-based and off-cycle increments.
Cognizant has given an average increase of 14 percent, in proactive merit effective April 1 last year proming 13,810 employees up to associate director levels, spending $36 million.
The IT major has rolled out target merit assessment effective July last year.
This assessment covered 34,216 employees with a spend of $65 million, an average increase of 12 per cent, media reported citing a filing with the Ministry of Corporate Affairs which is available on data platform Tofler.
Increments Declarations In IT Companies
Cognizant’s peers also started giving annual pay hikes to its staff on October 17, including Tata Consultancy Services (TCS) and Wipro.
They have rolled out merit salary increases (MSI) in the face of increasing macroeconomic headwinds and a tight labor market.
TCS has also made a significant announcement last week regarding the employees’ variable compensation.
According to this development, 70% of the workers will earn 100% variable pay, starting the holiday spirit early.
On the other hand, the performance of the remaining 30% ‘s business units will determine how much they are paid.
Joining the league, Thierry Delaporte, CEO and Managing Director of Wipro said the company will pay out 100 percent of variable pay to 85 percent of its employees for the second quarter of financial year 2023.
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