- Accenture introduces new pay hike structure splitting increases equally between base and lump sum
- The revised compensation approach applies from June to reward more employees amid economic challenges
- Salary increases for promotions remain fully in base pay, not split like regular hikes
Accenture has widened the pool of employees eligible for salary hikes, introducing a new compensation structure that splits pay increases equally between an increase in base salary and a one-time lump-sum payment, according to an internal memo reviewed by PTI.
The global IT services company said the revised approach will be implemented during its primary June compensation cycle to reward more employees while managing payroll costs amid a challenging macroeconomic environment.
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Under the revised framework, talent and group leads will first determine the overall percentage increase for eligible employees.
That increase will then be divided equally between a permanent increase in base pay and a one-time lump-sum payment.
For example, an employee receiving a 3% salary increase would get a 1.5% rise in base pay, while the remaining 1.5% would be paid as a one-time lump-sum amount.
According to the memo, the model is designed to provide employees with immediate cash benefits, which the company said many employees have indicated they value. The approach also enables Accenture to extend base pay increases to a broader section of its workforce without significantly increasing its long-term payroll commitments.
The company clarified that the 50:50 split will not apply to employees receiving promotions. Salary increases linked to promotions will continue to be reflected entirely in base pay.
Accenture also said the one-time lump-sum payment will not replace the company's regular performance bonuses paid during the December compensation cycle.
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Both the base pay increase and the lump-sum payment will be included in an employee's eligible earnings for the year and will be considered while calculating the FY26 bonus.
The company added that the lump-sum payment will remain subject to the standard percentage deductions applicable to employees participating in the Voluntary Equity Investment Program (VEIP) or the Employee Share Purchase Plan (ESPP).
(With PTI inputs.)
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