Accenture revises salary hike formula, splitting increases between base pay and lump sum

Under new model, half of approved salary hike will be added to an employee's base pay. The remaining half will be paid as a one-time lump-sum amount.

Accenture said the revised compensation model will help reward more employees without significantly increasing long-term payroll costs amid macroeconomic challenges.

Accenture said the revised compensation model will help reward more employees without significantly increasing long-term payroll costs amid macroeconomic challenges.

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 the talent lead decides to provide an individual a 3 per cent increase, that will result in a 1.5 per cent increase to 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 expressed they val

Mumbai: Accenture has introduced a new salary hike structure aimed at extending pay increases to a larger number of employees. Instead of giving the full increment through basic salary, the company will now divide eligible hikes equally between base pay and a one-time lump-sum payment.The new approach was followed during the company's main June salary review cycle.How The New System Works?Under the revised compensation model, talent and group leads will decide the total salary increase for eligible employees. LTIMindtree To Start Wage Hikes In Q4 FY26, 50% Staff Covered In First PhaseThe approved hike will then be split into two equal parts.For example, if an employee is given a 3% salary increase, 1.5% will be added to the employee's basic salary, while the remaining 1.5% will be paid as a one-time lump-sum amount.Why Accenture Made This Change?The company said many employees value receiving immediate cash. By sharing the increase between fixed salary and a lump-sum payment, Accenture can reward more employees without significantly increasing its long-term payroll costs.The move comes after last year's salary review, when only a limited number of employees received "stay-at-level" salary increases due to challenging business conditions.Promotion Hikes Remain UnchangedAccenture clarified that the new 50:50 split will not apply to employees receiving promotions. TCS Announces Annual Salary Hikes From April 1; Top Performers Get Double-Digit RaisesEmployees promoted to higher roles will continue to receive their entire salary increase through base pay, just as before.No Impact On Annual BonusThe company also confirmed that the lump-sum payment is separate from the regular bonus paid during the December compensation cycle.Both the increase in base salary and the one-time payment will be included while calculating an employee's eligible earnings for FY26. This means both components will be considered when determining the annual bonus.Employees enrolled in the Voluntary Equity Investment Program (VEIP) or the Employee Share Purchase Plan (ESPP) will also see the usual deductions applied to the lump-sum payment.

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