Amid criticism for offering its lowest salary packages to freshers in a decade, Cognizant Technology Solutions has reportedly given some employees annual salary hikes as small as 1%. This comes as the global technology services company rolled out salary hikes after a four-month delay, according to a report by The Economic Times.
The salary hike ranges from as low as 1% to as high as 5%, sources were quoted as saying by ET.
“For a rating of 3, the hike is around 1-3% while a 4 rating has been granted a 4% hike and a 5 rating to an employee is paid an increment of around 4.5% and at the most 5%,” source said.
Last year, the Nasdaq-listed company gave its employees salary increases in April, with the hikes ranging from about 7 per cent to 11 per cent.
The introduction of these modest salary increases comes amid widespread criticism of Cognizant for offering its lowest starting salaries in a decade— ₹2.52 lakh per year, or roughly ₹21,000 per month—to new hires through its off-campus recruitment drive starting Wednesday.
The company, based in New Jersey, employs approximately 254,000 people in India, which accounts for about 70 per cent of its overall workforce.
In the quarter ending in June, the company saw a decrease in its total workforce by 8,100, bringing the number of employees down to 336,300. This represents a decline of 9,300 employees compared to the same period last year.
Although Cognizant is one of India’s major outsourcing firms with a global presence, industry experts indicate that the company has reduced its latest salary package to levels reminiscent of 2002. This decision has sparked strong criticism, particularly given the current subdued economic environment.
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