Accenture's long-awaited salary hikes are here: 15,000 Indians rejoice as promotions roll out

Time of India

22-05-2025

Accenture has rolled out salary hikes between 3% and 13% for employees at Associate Manager level (Level 8) and above — its first round of raises in two-and-a-half years. The company is also set to promote nearly 50,000 staff globally this June, marking a significant morale boost after a long pause.
These changes were communicated to employees earlier this week and are part of the firm's June performance review cycle. Internal documents reviewed by Bloomberg reveal that about 15,000 promotions will take place in India, 11,000 in Europe, the Middle East and Africa, and 10,000 across the Americas. This round of promotions will impact roughly 6% of Accenture's global headcount, which stands at approximately 801,000.
Accenture Salary Hike: India at the heart of Accenture's growth focus
As reported by Money Control, Ajay Vij, Senior Country Managing Director for Accenture in India, said in an internal email that the company will provide 'stay-at-level (base pay) increases, including many of those not covered in the December cycle and others in key growth areas.' He added, 'The majority of Accenture's workforce in India will have received a base pay increase by the end of FY25, either through promotions or stay-at-level adjustments.'
Accenture expects to promote over 43,000 employees in India alone through FY25. This move aims to recognise talent in vital business units and compensate for a half-year delay in promotions, which was initially put off due to reduced demand for consulting services.
Muted employee response despite double-digit increases
While some employees are receiving raises in the double digits, reactions within the company have been restrained. The long gap between increments has dulled enthusiasm, despite the tangible financial benefit.
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The raises follow a period of stagnation, reflecting Accenture's attempts to navigate a 'volatile global business environment.' As the company noted in internal messages, the current outlook includes 'an elevated level of uncertainty in the global economic and geopolitical environment.'
AI demand drives revenue, but margins under pressure
The timing of these raises aligns with the company's Q2FY25 earnings, released on 20 March, where Accenture raised the lower end of its annual revenue forecast. This was largely due to increased demand for AI-integrated services in client operations — a segment that continues to expand across markets.
However, the positive topline trend has not fully translated to the bottom line. Operating margins have come under pressure compared to the same quarter last year. Still, the company said it remains focused on 'disciplined execution' and helping clients lead reinvention efforts.
Comparison with Indian IT peers
Unlike Accenture, domestic IT majors have taken a more cautious stance.
Tata Consultancy Services
(TCS) has deferred its salary hikes, stating they will be rolled out 'based on business environment.'
Wipro
has also pushed back its wage decisions, saying they will be made closer to the actual date.
In contrast, Accenture's decision signals a more proactive approach to talent retention, especially in high-growth verticals and regions like India.
Despite the hikes and promotions, performance-based bonuses and equity awards will continue to follow the December cycle, Ajay Vij confirmed. Detailed promotion letters will be issued to employees between 26 and 29 May, with all related information expected to be shared on the final day.
Accenture's cautious optimism is grounded in real concerns. The company cited ongoing instability in the geopolitical and economic environment. At the same time, it must contend with shrinking consulting demand and intensified scrutiny over U.S. government contracts.
The internal strategy seems clear: retain key talent, reinvest in growth sectors, and brace for turbulence. Whether these hikes and promotions are enough to secure workforce satisfaction remains to be seen — but they mark a significant step forward after months of uncertainty.
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