Accenture alters salary hike structure for June compensation cycle

Accenture has announced changes to its salary increase structure for the upcoming June compensation cycle, impacting its global workforce of over 780,000 employees. According to an internal memo reviewed by the Times of India, the company will split approved salary hikes equally between base pay and a one-time lump-sum payout. Half of the increase will be added to employees' base pay, while the other half will be disbursed as a lump sum in June.

The company explained that this revised structure aims to provide employees with immediate cash benefits while managing overall payroll costs. It stated, “We are both significantly increasing the number of people who receive stay-at-level increases and delivering the increase in two parts: half as a base pay increase and half as a one-time lump sum paid in June.”

Promotion-related salary hikes, however, will continue to be delivered entirely through base pay, and the lump-sum payments will remain separate from annual bonuses awarded in December. Compensation decisions will continue to be made by talent leads based on employees’ skills, performance, impact, and behaviors.

To illustrate the new structure, the memo provided an example: if an employee is approved for a 3% salary increase, 1.5% will be reflected in base pay, while the remaining 1.5% will be paid as a lump sum. The change has sparked mixed reactions among employees, with some questioning whether the arrangement is a one-time measure and how the lump-sum component will be taxed.

Accenture emphasized that the strategy aligns with its broader goals of being a reinvention partner for clients and fostering a workplace focused on innovation and growth. The company noted that June remains its primary cycle for promotions and base pay increases.