In response to a challenging macroeconomic environment and discretionary spending trends, Accenture (NYSE:ACN), a global professional services company, has announced its decision to withhold salary increases for its employees in India and Sri Lanka for the year 2023. The company, which employs over 300,000 workers in India, stated that the move aligns with its rewards philosophy of market-relevant pay.

The decision was communicated by Ajay Vij, the country managing director. This follows a financially challenging year for Accenture that concluded in August, which saw the company lay off 19,000 employees. The company’s performance is projected to be one of its lowest in Fiscal Year 2024 as a result of these measures.

Along with withholding salary hikes, Accenture will also curtail individual performance bonuses tied to global annual bonus funding. The company plans to restrict promotions within its 13-tier hierarchy. While promotions for Associate Director (Level 5) are set to proceed as planned in December, they will be at a reduced rate. Promotions for levels 1 through 4 have been deferred until June 2024.

Accenture’s measures mirror similar steps taken by other Indian IT firms in response to the current economic climate. HCLTech has frozen senior management salaries, Wipro (NYSE:WIT) has postponed salary increases until December 2023, and Infosys (NS:INFY) has delayed salary hikes.