What is the Cost Management Accountant (CMA) Salary in India?

In recent years, CMA has gained popularity as a career choice among students in the 12th grade. The high CMA salary is the main justification. The ICMAI campus placement offers an average CMA salary in India of Rs 10 lakhs annually. A 30% increase in the packages provided to newer CMAs has also been observed this year.

The job profile, location, area of specialization, and industry in which they operate are just a few of the variables that affect a cost and management accountant’s pay. If you have further CA or CFA degrees, you might even make up to 15-20 lakhs rupees annually.

This post will inform you of the starting, average, and maximum CMA salaries in India in 2023 on an annual and monthly basis. Additionally, you can look at the career roles, top industries for CMAs to work in, and scope of each.

The average CMA pay in India is Rs 10 lakhs per year (or Rs 83000 per month), with salaries ranging from Rs 3 lakhs to Rs 40 lakhs. The yearly wage is based on the 500 newly chosen CMAs who will be placed on the ICMAI campus in 2022.

In addition, the highest salary offered to a new CMA during off-campus postings is Rs. 27 lakhs annually. A CMA’s highest annual compensation can reach up to Rs 55 lakhs with experience and knowledge.

The salary for CMAs in India on an annual and monthly basis are shown in the table below for 2023: 

Your compensation will also be impacted by the number of times you need to take the CMA course, the time it takes, and the rank you get (if you do). So make an effort to pass the CMA Final examinations with a rank on your first try.  

In response to the demand on the market, countries all over the world pay accountants enormous salaries. The annual compensation for a CMA working abroad is $85,000.

The figures then become clear. In managerial roles, an experienced CMA can earn up to $125,000.

A Certified Management Accountant typically earns more money than a standard accountant, especially in the USA. CMAs are also given more desirable salary packages than non-CMAs and have better opportunities for progression in senior financial management positions.

Cost management accountants’ pay is based on a variety of criteria, including their position, location, industry, level of experience, and employer. You will learn about a CMA’s earnings based on many aspects in the section that follows.  

The CMAs’ salaries vary depending on their job descriptions. You can see a CMA’s salary for various job descriptions in the table below. 

The various career paths for cost and management accountants include:

1. Financial Analysts: They are essential to assessing the company’s financial value and future potential as well as monitoring its financial performance. In the company, they hold both junior and senior positions.
2. Finance Manager – The finance manager is responsible for managing all financial operations for the business. 
3. Chief Financial Officer (CFO) – The CFO is one of the company’s key jobs. They are regarded as the CEO’s right hand. Their responsibility is to closely monitor financial reporting and projections.
4. CMA – A CMA’s job is to perform financial services such costing, certification, and cost and tax record verification.
5. Cost Accountants – They are responsible for analysing and documenting every profit and cost a company makes. 

Every sector offers unique CMA packages in India and distinct career prospects. Here are the top industries in India that are paying the CMAs, even though standards have altered since the pandemic:

The United States is the first nation that comes to mind when we discuss other countries. As shown below, the CMA salary in the USA varies depending on the industry:

A CMA’s workplace has a major impact on their salary. The Middle East and the USA are where CMA is most common even though over 100 nations now recognize it as a profession. The United States is the best place to work as a CMA because the average pay for employment after completing the course is very high there. 

Let’s now examine the best-paying nations for cost management accountants: 

You will earn more money working in an economically developed country with a sizable market for CMAs than you would in a developing country with little demand for CMAs.

Consider each country’s cost of living and benefits before determining where you want to live and work. Make sure to weigh all of your options because this will be your most important career decision before deciding.

The location of the employment determines the CMA salary in India. The average salary in India is determined by several variables, including the city’s cost of living.

The following table lists the CMA salary ranges for various cities:

Government positions are also open to cost management accountants. The CMA pay offered by public sector entities is as follows: 

In India, the Big 4 businesses pay CMAs an annual compensation of 10.5 lakh rupees.

According to ICMAI regulations, each organization must pay the following minimum CMA training stipend or salary: 

*Metropolitan and ‘A’ Grade Cities

* Other Places

As a CMA, he is in charge of monitoring the business’s finances, including revenue and outgoing costs. He may work for public, private, or governmental organisations.  Strategic planning, decision-making, budgeting, keeping track of finances, and data preparation are daily responsibilities of CMA.

The different duties of a CMA include:

1. Cost management – They are in charge of managing and controlling the budget as anticipated. They support firms with their expenses, keep them under control, and lessen the chance of going over budget.
2. Performance management – Examining the financial industry and a company’s performance in the market and making improvements. Their responsibility is to distribute tasks in accordance with the organisational framework.
3. Internal Control – They are in charge of assuring fiscal accountability and integrity as well as preventing fraud. The CMA’s responsibility is to oversee compliance with rules and regulations and prevent staff members from stealing or engaging in fraud.
4. Examine Profitability – A CMA’s responsibility is to carry out assessments by choosing particular ratios. By dividing equivalent values or profits by assets, expenses, and revenues, they arrive at profitability. It is essential to understand profit margin, equity return, asset return, and capital return.
5. Investment Decision – They are also in charge of choosing how much money to spend on various business and investment prospects. Their task is to hunt for investment proposals that will be advantageous to the business over the long run while assessing the proposal’s possible risks and level of uncertainty.

Worldwide and particularly in India, demand for CMAs is rising quickly. Due to their expertise in their fields, the majority of organisations want to hire them. CMAs work in a variety of disciplines and sectors. Several of the booming businesses include:

• Finance
• Research
• Management
• Accounting

Students can choose from a variety of subdisciplines to qualify as management accountants. For college students, a career as a cost management accountant is an excellent choice. The following is a list of the sub disciplines that make up a career as a cost management accountant.

1. Financial Consultant

The responsibility for ensuring the financial feasibility of suggested investments is on the financial manager. He is also in charge of doing financial analysis and research that sheds light on a company’s profitability, stability, and liquidity as well as advising firms on the issuance of corporate bonds.

2. Management Accountant

For a career as a CMA, the management accountant is a crucial subspecialty. Students must possess planning and strategic skills to succeed in this field. However, budgeting, planning, and strategic thinking skills will be necessary for accountants. Additionally, it will support management in deciding on long-term financial strategies for the company.

3. Chartered Accountant

A valued profession, chartered accounting is similar to cost management accounting. It is also one of the most well-known occupations in India. The job entails drafting business tax returns, analysing financial accounts, and giving financial advice.

4. Cost accountant

A cost accountant’s job is to keep track of and evaluate all expenditures made by a company. This enables the company to identify the areas where losses are occurring and improve its financial management.

5. Chief Financial Officer

Everyone would aspire to have the esteemed position of chief financial officer. A successful businessperson could be regarded as the CEO’s right hand. The CFO is often in charge of all financial reporting and projections. A career in this field could lead to a high CMA Salary in India.

All major organizations are looking for CMA specialists. Businesses employing CMA professionals frequently have superior financial planning when compared to those without.

Therefore, the top firms recruiting CMA, including the top four large firms:

• Deloitte
• EY India
• PwC
• KPMG 

Other notable businesses where CMA professionals can find employment include:

• Amazon
• HPE
• Accenture
• Larsen & Toubro
• Wipro
• Cyqurex

Take a look at the list of businesses that participated in the CMA campus placement for 2022:

• Indian Oil Corporation
• Tata Motors
• Accenture
• CEAT Ltd.
• CAPITA India Pvt. Ltd.
• Dupont
• ICICI Bank
• Tata Motors
• GAIL Limited
• Invenio Solutions

Even though both the CA and CMA have accounting as their foundation, the CA focuses more on taxation, auditing, and accounting, whilst the CMA is based on management accounting. The strategic management accounting component of the CMA programme takes the stage.

The average CA salary in India is between Rs. 8 and Rs. 9 lakhs annually, and it rises with training and expertise. Contrarily, the typical remuneration offered to CMAs during college placement is Rs. 10 lakhs annually.