Cognizant has reportedly rolled out wage hikes starting from 1% to five% for a few of its staff, following a four-month delay. The hikes come amidst an uproar over the corporate’s decade-low beginning wage provides for contemporary graduates.
The raises, primarily based on efficiency scores, have sparked additional dialogue, notably as the best increment was capped at 5%, based on a report within the Financial Instances.
The report cited sources who mentioned staff with a efficiency ranking of three obtained a 1-3% improve, these with a ranking of 4 noticed a 4% hike, and people with a prime ranking of 5 have been awarded increments as much as 5%.
That is notably decrease than the wage will increase of 7-11% that Cognizant staff reportedly obtained in April 2023. Enterprise At the moment was unable to confirm this info independently.
The timing of those modest raises coincides with widespread criticism of Cognizant’s off-campus hiring program, the place the beginning wage for contemporary graduates was set at Rs 2.5 lakh every year. This pay scale, unchanged since 2002, has grow to be a focus of debate on social media, particularly given the present financial situations.
Cognizant, which employs round 254,000 individuals in India—roughly 70% of its world workforce—additionally reported a discount in its whole headcount by 8,100 staff within the quarter ending June 2024. Regardless of these challenges, the corporate posted a 22.2% year-on-year improve in internet revenue for the second quarter, amounting to $566 million, together with a 3.6% sequential development.
Amid the uproar over the low beginning salaries, consideration has additionally turned to Cognizant’s CEO, Ravi Kumar Singisetti, who’s now reportedly the highest-paid IT CEO in India. In 2023, Singisetti earned $22.56 million (roughly Rs 186 crore), a compensation bundle that’s 556 instances the median wage of Cognizant staff. His earnings included a one-time inventory award valued at $20.25 million, which considerably contributed to his whole compensation.
