Province Has New Payroll Rebate Agreement With Tech Services Company.
Global technology services company Cognizant is preparing for more growth in Nova Scotia, potentially creating hundreds more well-paying jobs.
Today, February 20, the Province announced it will support the company’s growth with a new payroll rebate agreement, which could see as many as 1,000 additional jobs in Nova Scotia within six years.
“We’re excited to see an employer like Cognizant again choose Nova Scotia to expand its operations,” said Economic Development Minister Susan Corkum-Greek, Minister responsible for Invest Nova Scotia. “Cognizant has been a success story here in one of our strategic growth sectors, creating well-paying jobs for Nova Scotians, new post-secondary graduates and newcomers.”
In June 2023, Cognizant reached a milestone of 1,000 employees in Nova Scotia sooner than anticipated, an impressive growth baseline on which the new rebate agreement will be applied.
The company could spend an estimated $246.6 million in combined salaries and benefits within six years, with the Province collecting income and consumption taxes of about $31.9 million – in addition to the federal taxes collected – from the new employees. As a result, the company could earn a rebate of up to $20.7 million under this agreement.
Quotes:
“We’ve exceeded expectations in Halifax in under two years, making Cognizant the largest IT services employer in Atlantic Canada, with a plan to grow to 2,000 associates. Our collaboration with local universities, such as Dalhousie, underscores our dedication to nurturing local talent combined with our global expertise. We are grateful for the Province’s support – together we’re driving Nova Scotia’s ICT sector forward.”
— Jay MacIsaac, Canada Country Head, Cognizant
“The information and communications technology sector is a tremendous opportunity to create more high-paying and high-productivity jobs across Nova Scotia. Cognizant’s latest growth plan is a notable example of how we’re succeeding in bringing more business to Nova Scotia and, as a result, generating growth in the strategic ICT sector.”
— Peter MacAskill, President and CEO, Invest Nova Scotia
Quick Facts:
- the company is a wholly owned subsidiary of U.S.-based Cognizant Technology Solutions Corporation
- the first rebate agreement with Cognizant was announced in January 2022
- payroll rebates are designed in a way that the tax revenue generated for the Province by the new jobs is more than the amount spent on the rebate
- Cognizant will be eligible for smaller rebates if targets outlined in the agreement are not met
- according to Statistics Canada, Nova Scotia’s ICT sector contributed $2.06 billion to the province’s GDP in 2022
Source: Provincial Release
