Accenture has implemented a significant change to its salary increase approach for the primary June cycle this year, following a period of limited 'stay-at-level' increases last year. According to an internal memo viewed by PTI, the global IT services major is now delivering salary hikes through a 50:50 split between base pay and a one-time lump-sum payment. Under this new structure, talent and group leads will determine an overall percentage increase for eligible employees, which will then be divided equally between base pay and lump-sum components. The revised compensation model comes after a period of limited 'stay-at-level' salary increases last year and reflects the company's effort to balance employee rewards with financial discipline. As reported by PTI, the revised approach will be implemented during the primary June compensation cycle to reward more employees while managing payroll costs amid a challenging macroeconomic environment.
For example, if a talent lead decides to provide an individual a 3% increase, that will result in a 1.5% increase to base pay and a 1.5% lump-sum payment. As reported by PTI, this dual approach provides employees with immediate cash benefits, which many have expressed they value, while allowing the firm to extend base pay increases to a larger portion of its workforce without overburdening overall payroll. The company emphasized that this 50:50 split does not apply to employees receiving promotions, with increases tied to promotions continuing to be delivered entirely through base pay. The model is specifically designed to widen the pool of employees eligible for salary hikes while maintaining financial discipline. According to the latest reports, the change applies only to annual compensation revisions and not to promotions, ensuring that employees receiving promotions will continue to receive the entire salary increase through base pay.
According to Accenture's details shared with PTI, both the base pay increase and 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 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). Additionally, the one-time lump-sum payments will not replace the standard bonuses awarded during the December cycle. The company stated that the revised compensation model will help reward more employees without significantly increasing long-term payroll costs amid macroeconomic challenges, as the lump-sum component provides employees with immediate cash while limiting the increase to base pay enables the company to extend salary hikes to a larger section of its workforce without proportionately increasing its long-term payroll obligations.
