For those wondering why they received relatively low salary hikes despite achieving Tier 1 or Tier 2 ratings (especially in Advisory), the reason is the compensation band ceiling associated with each designation.

Senior Associate (SA) compensation generally caps around ₹35 LPA.

Manager (M) compensation generally caps around ₹45 LPA.

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This is a mindgame. After which number should we say the person is closing in to the ceiling amount?
When I was SA, even at 27L I was told I have touched the highest and next year even ar 28L I was told I’m close to highest amount. As an SA I never went beyond 30L.

So telling people that their salaries are already high and close to roof limit of the band could be just a mindgame!!

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Actually, this is a classic case of what is called intermediate zone. 30-35 is a sweet spot where you will find both experienced SAs and fresher M-level employees, so the actual hike in this bracket also depends on other things like YOE, revenue for LoS, tech stack, and so on i.e.for few cases 30 might be the ceiling and for others 35. The same is true for the 40-45 bracket, which overlaps between lateral Ms and starting SMs, which is why you find some Ms getting capped at 40 while other may go till 45 (but rarely beyond that) until promoted to SM.

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What about Promotion case? If an SA get promoted to M, will they get that person at the base band of M ? No matter what how low the current salary is???

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It's 8 YOE

You are absolutely wrong, how would you justify then if a SA is getting 9.7lpa? Is that a lower band or highest band? Even with this lowest package they aren’t giving decent hike saying this is the band of SA…

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If your current salary is already approaching these levels, the firm may limit your increase to around ₹32–33 LPA (for SAs) or ₹42–43 LPA (for Managers). This helps maintain room for future annual increments of 4–5% in case a promotion does not happen the following year.

As a result, employees closer to the top of their salary band may see lower percentage hikes compared to peers who are positioned lower within the same band, even when performance ratings are similar.

What about someone on lower side of band reviving less hike with tier 1

It could be constrained by other parameters like the overall budget for your service line, Techstack etc. But bonus would be great for Tier 1 rating nevertheless.

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You’re 100% right. What do you think are the upper caps for lateral SAs against campus hired SAs?

Campus hires especially from Tier 1/2 college are evaluated completely differently

Hike doesn’t have any co relation with tier ratings.

Yes that is what I am trying to explain here ✌️

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