Cognizant clarifies entry-level annual pay for engineers at Rs 4-12 lakh; Rs 2.52 lakh for non-engineering undergrads

New Delhi: Facing social media backlash over the Rs 2.52 lakh annual salary offer for freshers, IT giant Cognizant on Sunday said it offers Rs 4-12 lakh salary to fresh engineering graduates, and the salary being quoted on social media is for non-engineering undergraduate degree holders.

The firm also faced social media ridicule for doling out annual salary hikes of as low as 1 per cent, but what is being quoted is the lower band of the 1-5 per cent annual increments that the firm has dished out based on individual performance.

Cognizant annually hires fresh engineers and non-engineering/IT graduates for varied roles.

With the two recruitments running almost parallel, hiring for three-year non-engineering/information technology undergraduate degree holders picked up and was widely shared as Cognizant's salary package for freshers.

"Our recent job posting for talent from non-engineering backgrounds, with a 3-year undergraduate degree has been grossly misrepresented. This job posting, with compensation of Rs 2.52 lakhs annually, was only for candidates with a 3-year undergraduate degree and not for engineering graduates.

"Our annual compensation for fresh engineering graduates ranges from Rs 4 lakhs to Rs 12 lakhs annually, depending on the category of hiring, skill set, and advanced industry accredited certifications," said Surya Gummadi, EVP and President, Cognizant Americas.

Cognizant hires non-engineering undergraduate degree holders for administrative and other roles and invests substantial time and money in upgrading their skills and IT training, after which they get absorbed in various roles.

"The compensation we offer for engineering graduates is highly competitive within the IT services peer group," he said.

Cognizant's salary package for engineering graduates matches the best in the industry, and at some levels, it is even higher than peers.

"We have been recruiting and upskilling freshers from engineering institutions as well as colleges offering degrees in science, arts, and commerce. Today, as AI increasingly powers modern businesses, we are creating new pathways for talent to thrive in India's technology industry," Gummadi said.

Gummadi -- who joined Cognizant as a fresher two-and-half-decades back and rose through ranks to now head geography, which forms three-fourths of Cognizant's revenues -- said the firm has a robust training programme that has benefited freshers across the board.

"When we hire for entry-level roles, we invest approximately Rs 2 to 3 lakhs per associate in the initial years to train, mentor and upskill in advanced technologies. This is for both engineering and non-engineering associates. Hundreds of our associates, who joined us with a 3-year undergraduate degree, today hold key positions from manager to assistant vice president across the company," he said.

On the annual increments, Cognizant said it works diligently to be competitive in its compensation strategy.

"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," it said.

Gummadi said Cognizant is a people-first company.

"India is the heart of Cognizant and its largest talent hub - with over 70 per cent of its over 3,36,000 global workforce - based in major metros and Tier-2 cities, across the country," he added.

"To bring our offices closer to where our associates live, we have recently opened new centres in Bhubaneshwar and Indore and expanded operations in Hyderabad. Everything we do hinges on the quality, dedication and scale of our talent." Over the past decades, the firm continued to unlock the full potential of the rich talent pool in India.

"We continuously invest in training and upskilling our associates in advanced digital technologies, sponsor higher education and leadership development programmes with top institutions so that our people are empowered to be at the forefront of innovation, learn the latest technologies, work with global clients and accelerate their career growth," he noted.

He said Cognizant has been recruiting and upskilling freshers from engineering institutions as well as colleges offering degrees in science, arts, and commerce.

"Today, as AI increasingly powers modern businesses, we are creating new pathways for talent to thrive in India's technology industry."