Single-digit pay hike in IT new reality

BENGALURU: Last week when Nasdaq-listed Cognizant rolled out an increment to employees after a four-month delay, it had to face criticism on social media as wage hike starting as low as 1%.

Soon, the company in a statement said the merit increases for this cycle are tied to both individual performance and macro industry dynamics. As per sources, employees with the highest rating received only a 4.5% salary hike. Tata Consultancy Services (TCS) rolled out double-digit wage hikes for high performers and an average 4.5% to 7% wage hike for the rest of the employees, with effect from April 1.