Accenture scraps pay hikes; to give lower bonuses, fewer promotions in India, Sri Lanka

Updated : Oct 12, 2023 16:46
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Editorji News Desk

Accenture Salary: IT company Accenture will skip giving pay hikes to its employees in India and Sri Lanka in 2023 except where it is legally mandated or where it has committed to it in critical skill areas, reported Moneycontrol. As per the report, Accenture India's Managing Director Ajay Vij has informed the employees about the same via an email.

Challenging Macro Environment

Anil Vij has said that the company experienced a macro environment that was more challenging than anticipated at the beginning of the FY23 fiscal year, and growth was lower than expected. The company that follows September-August financial year reported mixed numbers last quarter which was the second-lowest among the beginning of year guidance in the past 16 years.

Also Read: Tech salary increases cut in half as hiring pace slows

Anil Vij's Email

Anil Vij's email accessed by Moneycontrol says, “Our rewards philosophy is to provide market relevant pay based on skills and location that is affordable for Accenture. Keeping our payroll aligned with market is essential to the health of our business, including competitive pricing of our services”.

“Given the context of our performance, we will not be providing any stay-at-level (base pay) increases this year except where legally mandated or committed in a few critical skill areas,” he added.

The email further stated that the company will disburse individual performance bonuses based on the individual’s contributions, however, it will be significantly lower than last year.

Bonus Reduction

The company is also reducing its bonuses as the company didn't perform as expected on which the annual global bonus depends. 

“…our global annual bonus funding is based on our company performance. Given our performance, you should expect our global annual bonuses to be significantly lower than last year,” the e-mail read.

 

Accenture

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