Accenture in India and Sri Lanka will not provide salary hikes in 2023, except where legally mandated or for specific critical skill areas, according to a letter from Country Managing Director Ajay Vij. This decision comes as Accenture faced challenges in the macro environment, and the company’s growth was below its initial plan for the fiscal year 2023. Vij’s message explained that the rewards philosophy is based on providing market-relevant pay aligned with skills and location. While individual performance bonuses will be offered where applicable, they will be “significantly lower than last year.”
In addition to the salary decisions, promotions will be affected. Up to the level of Associate Director (Level 5), promotions will occur in December, but they will be lower than the previous year. Promotions for levels 1 through 4 have been postponed until June 2024.
The move by Accenture is in line with trends in the IT sector in India. HCL Technologies previously announced it was deferring salary hikes for senior management staff and junior employees. Wipro postponed its salary hikes from September to December 2023, while Infosys has not yet rolled out salary hikes that were initially scheduled for April and July.
Accenture’s decisions reflect the broader climate in the sector, where many companies have faced challenges related to macroeconomic conditions and evolving market dynamics.
