Accenture has introduced a new salary hike structure that changes how pay increases will be distributed among employees. Under the revised model, employees who receive an approved salary increase will have half of the increment added to their base salary, while the remaining half will be paid as a one-time cash payout in June.
The new compensation framework will be implemented as part of the company's June salary review and will apply to its global workforce, including approximately 3.5 lakh employees in India.
How the revised salary hike model works
Under the new policy, 50% of an approved salary increase will be incorporated into an employee's base salary, while the remaining 50% will be provided as a one-time lump-sum payment.
For instance, if an employee is granted a 3% salary hike, only 1.5% will be added to the base salary, with the remaining 1.5% paid separately as a one-time cash payout in June.
According to an internal memo cited by PTI, the company said the revised model is intended to provide employees with more immediate cash while enabling a larger number of workers to receive base salary increases.
Accenture noted that last year, salary hikes for employees who remained at the same job level were limited. By splitting approved increments between permanent salary increases and one-time payouts, the company said it has been able to extend base pay revisions to a broader group of employees this year.
The company clarified that salary increases awarded as part of promotions will continue to be added entirely to employees' base pay. It also said the one-time cash payout will remain separate from the annual bonus cycle, which is scheduled for December.
Accenture added that compensation decisions will continue to be based on factors such as employees' skills, performance, overall impact and workplace behaviour.
The revised compensation structure has drawn mixed reactions from employees. While some have questioned whether the arrangement is a one-time measure applicable only this year, others have sought clarification on the tax implications of the one-time cash payout.
