Accenture introduces new salary hike structure for more employees
Accenture has expanded salary hikes for more employees by splitting eligible pay increases equally between base pay and a one-time lump-sum payment. The revised compensation model aims to reward more staff while managing payroll costs amid the current macroeconomic environment
New Delhi: Accenture has significantly expanded the number of employees receiving salary hikes, delivering the increase through a combination split equally between base pay and a one-time lump-sum payment in June, as it seeks to reward more staff while managing payroll amid the current macroeconomic environment.
The global IT services major is taking a different approach for its primary June cycle this year, following a period of limited “stay-at-level” increases last year, according to an internal memo viewed by PTI.
Under the new compensation structure, talent and group leads will determine an overall percentage increase for eligible employees, which will then be divided into two equal parts.
For instance, if a talent lead decides to provide an individual with a 3 per cent increase, it will result in a 1.5 per cent increase in base pay and a 1.5 per cent lump-sum payment.
The company noted that this dual approach provides employees with immediate cash, a benefit many have said they value, while allowing the firm to extend base pay increases to a larger portion of its workforce without overburdening its overall payroll.
However, according to the details shared by Accenture, this 50:50 split does not apply to employees receiving promotions.
Increases tied to promotions will continue to be delivered entirely through base pay.
Furthermore, the one-time lump-sum payments will not replace the standard bonuses awarded during the December cycle.
Both the base pay increase and the lump-sum payment will be factored into an employee’s eligible earnings for the year, thereby counting towards the calculation of their FY26 bonus.
The lump-sum payment will also be subject to standard percentage deductions for employees enrolled in the Voluntary Equity Investment Program (VEIP) or the Employee Share Purchase Plan (ESPP).