Cognizant clarifies fresher salary issue, says ‘grossly misrepresented’

American IT services major Cognizant on Sunday sought to dispel a social media row surrounding the salary it was paying to freshers, saying they were far from the truth and “grossly misrepresented” the firm.


Several social media posts claimed that the IT giant was paying Rs 2.52 lakh annual compensation to freshers, with many comparing it to 2002 levels.


Responding to the claims, Surya Gummadi, executive vice president and president, Cognizant Americas, said, “Our recent job posting for talent from non-engineering backgrounds, with a three year undergraduate degree has been grossly misrepresented.” 


“This job posting, with compensation of Rs 2.52 lakh annually, was only for candidates with a three-year undergraduate degree and not for engineering graduates.”


Gummadi said that its annual compensation for fresh engineering graduates ranged between Rs 4 lakh and Rs 12 lakh. 


“Our annual compensation for fresh engineering graduates ranges from Rs 4 to 12 lakh annually, depending on the category of hiring, skill set, and advanced industry accredited certifications,” said Gummadi.


“The compensation we offer for engineering graduates is highly competitive within the IT services peer group,” he further added.


The company also said that it approximately invests Rs 2 to 3 lakh per associate in the initial years to train, mentor and up skill in advanced technologies.


“This is for both engineering and non-engineering associates. Hundreds of our associates who joined us with a three year undergraduate degree, today hold key positions from manager to assistant vice president across the company,” said the company.


The company is also facing flak for allegedly offering low hikes to its employees, which according to reports ranged from just one to five per cent, despite the firm booking strong profits. 


Clarifying its stance, Cognizant said, “The merit increases for this cycle are tied to both individual performance and macro industry dynamics. This year, we are one of the few IT companies in India that have delivered increments and bonuses for employees. This recent pay hike is the 4th that most Cognizant’s associates have received in the past 3 years.  Moreover, these hikes are just one component of the comprehensive total rewards package.”

First Published: Aug 18 2024 | 4:47 PM IST