To all those who are finding it difficult to understand how hikes and bonus are decided, check out this thread & comments :


All Big 4 firms follow a process known as salary band normalization. This means that after a few years, employees with the same designation, college tier, and years of experience (YOE) are brought to roughly the same fixed salary. These groups are referred to as “cohorts,” and performance evaluations are typically done through peer comparisons within each cohort.

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As a result, high-performing individuals mainly benefit in the early years by receiving stronger ratings and higher initial hikes. However, in subsequent years, their hikes tend to slow down as their pay approaches the normalized band. Over time, they may still end up earning more in total than someone who started slower but eventually caught up through normalization.

Ultimately, exit-level salaries tend to converge across cohorts. The key differentiator becomes the annual performance bonus, which is directly tied to that year's individual performance—though even this is influenced by the line of service (LoS) budget and the company’s overall performance. This is why employees often strive for strong feedback and higher ratings each year (to get good bonus mainly)

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Thank you for sharing, pretty sure this would help a lot of people by showing the right perspective

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PwC PwC India Pwc AC EY Deloitte USI Deloitte India Deloitte KPMG India

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