Salary hike and bonus disbursement
CEO S Ravi Kumar, during a town hall meeting at Cognizant’s renovated Kolkata office, announced that salary increases would take effect from August 1. Bonuses for eligible employees, initially slated for distribution in March, will be communicated by managers to their respective teams by March 11, according to a Mint report.
Attrition remains a challenge for IT companies
The IT sector is grappling with high attrition rates, which surged to 15.9% by the end of 2024, compared to 13.8% the previous year. Attrition refers to employees voluntarily leaving their jobs.
Cognizant’s attrition rate surpasses competitors
Cognizant’s voluntary attrition rate for the 12 months leading up to December 2024 surpassed that of its competitors, including Tata Consultancy Services Ltd (13%), Infosys Ltd (13.7%), and HCL Technologies Ltd (13.2%). Notably, TCS and Infosys figures encompass attrition within their IT services divisions, while HCL Technologies’ data excludes digital process automation, as per the report.
TCS, Infosys salary hikes 2025
After witnessing a boom during the COVID-19 pandemic, the IT sector is now facing headwinds amid global uncertainties. According to reports, India’s largest IT services company TCS is set to roll out lower salary hikes this year between 4 per cent and 8 per cent, while the country’s second-largest IT firm Infosys will also give an increment between 5 per cent and 8 per cent.
Tata Consultancy Services (TCS) will also announce lower quarterly variable pay for October-December 2024. While junior- and mid-level employees are set to receive full 100 per cent variable pay, the senior employees might see the variable pay between 20 per cent and 40 per cent, according to a Moneycontrol report.
