An American multinational information technology services and consulting company, Cognizant has announced that the company is rolling out annual salary hikes for employees ranging between 7% to 10%.
However, the company has also stated that employees in Germany and France may have to wait for new salary hike letters. The main reason behind the delay is local worker law rules.
Cognizant informed its employees through a “formal eLetters” last week of the new salary package. The letter mentioned that the hikes will be taking effect from October for levels up to associate director.
As of the quarter ended June 30 Cognizant’s headcount expanded to over 341,000 employees globally in Q2 amid an intensely competitive labour market. The voluntary annualized attrition rate increased to 31% from 26% in the preceding three months indicating strong demand for tech talent across the industry.
However, on the other hand, IT major Wipro has announced that it will be awarding annual increments to eligible employees for the year ending 2022.
Earlier, The employee said that the salary increment will be received along with their September salary. The company is expected to cover 96 percent of its employees.
On the other hand, Tata Consultancy Services (TCS) will payout 100% variable pay for 70% of its employees.
The company is paying variable pay to the employees just before the festive season which has been a great piece of news for the employees.
Milind Lakkad, Chief Human Resources Officer, said, “We are going to pay 100% variable pay for 70% of employees… the remaining 30% will get paid based on their business unit performance. This is for Q2 (July-September).”
The top four IT service providers, Infosys, Wipro, TCS, and HCL all together have on-boarded over 1,05,000 freshers in 2022.
The IT majors are expected to hire a total of 1.57 lakh freshers by end of this fiscal. The company’s attrition rate has also decreased marginally.
