Impact of Budget Cuts on Promotions in Big Four Accounting Firms

Big Four Firms in India Take a Cautious Turn in 2025 Amid Budget Pressures

New Delhi | July 2025 – India’s Big Four accounting and advisory firms—Deloitte, EY, PwC, and KPMG—have long been known for their fast-paced promotions, large-scale graduate hiring, and generous salary hikes. But this year, the tone is more measured.

Facing a cocktail of global economic slowdown, tighter client budgets, and cautious corporate sentiment across tech and startup sectors, these firms are dialing back expectations on promotions and pay hikes. While their dominance in India’s consulting and assurance ecosystem remains unchallenged, 2025 has brought in a new wave of restraint.

Promotions and Pay: A Marked Shift from Previous Years

Last year’s growth stories, where promotions ran into the thousands and pay bumps were closer to double digits, are giving way to a more filtered approach. This year, Big Four firms are prioritizing profitability per employee, performance-led assessments, and longer tenure over routine elevation cycles.

Deloitte Scales Back

Deloitte has seen a sharp drop in internal elevations this year. Roughly 4,600 professionals were promoted in 2025, down from around 5,000 in 2024—a decline of nearly 8%.

The more telling number lies at the top: only 74 employees were elevated to Partner or Executive Director positions, compared to 150 last year. The firm hasn’t made public remarks explaining the change, but internal cues point to tightened revenue forecasts and more rigorous partner-track filters.

EY Still Hiring, But Promotions Softened

EY India showed a marginal dip at the senior-most levels: 110 Partner promotions in 2025 versus 124 last year. While leadership has framed this as business-as-usual, the underlying messaging is clear—EY is calibrating cautiously.

That said, EY is still betting big on future growth. The firm plans to hire 13,000 professionals annually, reflecting long-term confidence despite current pressures.

“Promotions this year continue to reflect our business needs and performance benchmarks,” — Arti Dua, Partner & Talent Leader, EY India.

Understanding the Partner Pay Structure

In Indian professional services, partnership is not a one-size-fits-all elevation. Typically, firms appoint a mix of Equity Partners—those who co-own the firm and share in profits—and Salaried Partners, who receive fixed compensation with variable bonuses but do not hold equity.

Across the Big Four’s Indian arms, the combined partner headcount now hovers around 3,000. While partner elevation numbers vary by firm, the broader shift is toward fewer, high-performing promotions tied to profitability per vertical.

What’s Happening with Salaries?

In 2024, average pay hikes across the Big Four ranged between 7% and 9%. This year, however, that figure is expected to cool to between 5% and 7%, according to internal benchmarks and market studies.

Even industry-wide compensation surveys—like Aon’s—have had to revise expectations. Aon had projected a 9.2% average salary increase, but actual delivery has lagged behind, especially in large consulting setups like the Big Four.

PwC and KPMG: Quiet Adjustments, Targeted Increments

Unlike Deloitte or EY, PwC India has not publicly shared its promotion or compensation data this year. But insiders suggest that the firm is walking the same tightrope—leaner promotions, higher productivity expectations, and performance-linked reward systems.

KPMG, meanwhile, has chosen to publicly highlight its continued focus on recognizing top performers despite macroeconomic challenges.

“We’re prioritizing competitive pay for our best performers, ensuring value even when overall increments are tighter,” — Reena Wahi, Partner & Head, People, Performance & Culture, KPMG India.

What’s Driving the Slowdown? A Global Reset in Consulting Demand

The story behind the numbers isn’t isolated to India. Several international developments are influencing how Indian consulting firms allocate their budgets:

• Global Tech Layoffs: Major clients like Microsoft, Meta, and Amazon have slashed consulting contracts as part of broader cost-cutting.

• Indian IT Sector Signals: Homegrown players such as TCS, Infosys, and Wipro have sent mixed cues on hiring and pay, with some halting appraisals altogether.

• Startup Sector Realignment: Once heavy users of Big Four advisory services, Indian startups—including Zomato, Cars24, and Gupshup—have entered a reset phase marked by AI adoption, consolidation, and tight burn controls.

• Regulatory Overhang: Rising scrutiny around ESG disclosures, cross-border tax regulations, and geopolitical tensions is forcing clients to rethink advisory mandates.

Forecasts vs Reality: Where the Gap Is Visible

Metric	Projected (2024–25)	Actual (2025)
Deloitte Avg. Salary Hike	8.8%	5–7%
Aon Avg. India Inc. Salary Hike	9.2%	~6–7%
Partner Promotion Trend (Sector-wide)	Stable or Increasing	Slowing, More Selective

Conclusion: Measured Growth, Not Retrenchment

This isn’t a crisis—it’s a strategic recalibration. Despite cuts, none of the Big Four are shrinking their India operations. In fact, long-term hiring plans at firms like EY show optimism beyond 2025.

But the days of broad-based elevations and liberal bonuses appear to be on pause. With external pressures intensifying and clients rethinking consulting spends, India’s Big Four are doing what they do best—adapting.