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. You can learn more about the starting, average, and maximum CMA salaries in India in 2023 in this post. You can also look at the employment roles, the best industries for CMAs to work in, and the breadth 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 table below mentions the CMA salaries in India on an annual and monthly basis in 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.

After that, the numbers become clear. In management jobs, a CMA with experience can earn up to $125,000.

A Certified Management Accountant typically makes more money and receives a variety of benefits than a standard accountant, especially in the USA. Additionally, CMAs receive more attractive pay offers than non-CMAs and have more 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 different job profiles for Cost and Management Accountants are:

1. Financial Analyst – They are crucial in assessing potential capabilities and financial value as well as monitoring the business’s financial performance. In the company, they hold both junior and senior positions.
2. Finance Manager – The finance manager’s responsibility is to direct the organization’s financial operations.
3. Chief Financial Officer – One of the main positions in the firm is that of CFO. They are regarded as the CEO’s right hand. Their responsibility is to closely monitor financial reporting and projections.
4. CMA – The duties of the CMA include providing financial services such as costing, certification, and record-keeping for taxes and costs, as well as pricing items.
5. Cost Accountants – They are responsible for analyzing and documenting each profit and expense an organization 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 despite the fact that over 100 nations now recognise 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.

Now, let us check various top-paying countries 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 a number of variables, including the city’s cost of living.

The below table mentions the salaries of CMA in different cities:

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

The CMA salary in India in Big 4 firms is ₹10.5 Lakhs per annum.

As per the ICAI rules, the minimum CMA training stipend or salary every organisation has to pay is:

** 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 various roles of a CMA are:

1. Cost Management – The planned budget is their responsibility to manage and oversee. They support firms with their expenses, keep them under control, and lessen the chance of going over budget.
2. Performance Management – Evaluating and improving the firm’s performance in the market after analysing the financial sector. Their responsibility is to distribute tasks in accordance with the organisational framework.
3. Internal Control – They are in charge of guaranteeing fiscal responsibility and integrity and combating fraud. The CMA’s responsibility is to oversee compliance with rules and regulations and prevent staff members from stealing or engaging in fraud.
4. Analyse Profitability – It is the responsibility of CMA to carry out analyses using 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 – Additionally, they are in charge of making financial choices and directing money to investment and business prospects. It is their responsibility to search for investment proposals that will long-term benefit the business while evaluating any potential risks and degree of uncertainty associated with the project.

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 Advisor

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

So the top companies that are hiring CMA include the top four big firms:

• Deloitte
• EY India
• PwC
• KPMG

Some other leading companies where CMA professionals can work are:

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

Check the list of companies that took part in the CMA campus placement 2022:

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