Accenture, a leading IT giant in India, announces a salary freeze for its employees in 2023, with exceptions. Explore the reasons behind this move and its impact on the IT industry.


Accenture, a prominent IT company in India, has informed its employees via email that it will not be offering salary increases to its workforce in India and Sri Lanka for the year 2023. However, this decision comes with exceptions, as it does not apply to divisions where such increases are legally mandated or committed to in critical skill areas, according to information provided by MoneyControl. The announcement was made by Accenture India's managing director, Ajay Vij.

This move coincides with a challenging period for the IT sector, as Accenture's growth has fallen short of its initial projections. In March 2023, the company announced its plans to lay off 19,000 employees during the year, reflecting the tough business environment. Accenture, which follows a financial year from September to August, also reported mixed financial results in the previous quarter. Its FY24 guidance was one of the lowest in the past 16 years.

In the email sent to employees, Ajay Vij outlined that Accenture's compensation strategy is designed to provide competitive pay based on skills and location, while remaining cost-effective for the company. As a result, base pay increases will not be granted this year, except where legally mandated or in specific critical skill areas.

The email outlines lower individual performance bonuses and scaling back promotions, with Associate Director promotions scheduled for December and levels 1 through 4 postponed until June 2024 to align with growth objectives.

Accenture's decision to delay salary increases for senior management and junior employees reflects the broader challenges in the Indian IT sector, as other major companies have also done.

Currently, Accenture employs over 300,000 professionals in India. This announcement underlines the ongoing difficulties in the IT industry, driven by factors such as global economic conditions and the necessity to maintain competitiveness while managing costs. The impact of these decisions on the broader job market and employee morale within the sector remains to be seen.

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