Cognizant has responded to recent criticism over its fresher salary structure, specifically addressing concerns over offering a Rs 2.5 lakh annual package to new hires. The global IT services giant clarified that this salary figure is only for undergraduate students, engineering graduates receive significantly higher compensation. Surya Gummadi, EVP and President, Cognizant Americas, clarified the company’s stance on the matter in a statement to India Today Tech.

Cognizant’s recent annual salary offer of Rs 2.52 lakh has been the subject of controversy, with critics claiming it undervalues ​​the value of fresh engineering graduates. However, Gummadi clarified that the figure was for candidates with three-year bachelor’s degrees from non-engineering backgrounds. He stressed that the company’s salaries for fresh engineering graduates are far more competitive and go up to Rs 12 lakh.

“Our annual salaries for fresh engineering graduates range from Rs 4 lakh to Rs 12 lakh, depending on the category of placement, skill set and advanced industry recognised certifications. The salaries we offer to engineering graduates are highly competitive within the IT services peer group,” he said.

He also added that Cognizant’s approach to talent management extends beyond just competitive salaries. The company invests around Rs 2 to 3 lakh to train, mentor and skill each associate in advanced technologies in their initial years. This investment applies to both engineering and non-engineering associates, so that all employees are equipped with the skills required to excel in the rapidly evolving industry.

In India, Cognizant has also opened new centres in Bhubaneswar and Indore and expanded its operations in Hyderabad. These moves are part of the company’s strategy to bring its offices closer to where its associates live.

Addressing recent concerns about salary increases, Cognizant highlighted its efforts to remain competitive in its compensation strategy. The company has implemented merit-based increases this year, which are tied to both individual performance and broader industry trends. This latest salary hike is the fourth pay hike received by most Cognizant associates in the last three years.

In its statement, Cognizant said, “We are one of the few IT companies in India to have given salary hikes and bonuses this year. This hike is just one component of a comprehensive total rewards package.”