Accenture Introduces New Salary Hike Model: Half Added to Base Pay, Half Paid as Cash

Global IT services giant Accenture has introduced a new salary hike structure that changes how annual pay increases are distributed to employees.

Under the revised model, employees receiving an approved salary increase will have 50% of the increment added to their base salary, while the remaining 50% will be paid as a one-time cash payout during the company's June salary review.

The new compensation policy will apply to Accenture's global workforce, including approximately 3.5 lakh employees in India.

How the New Salary Hike Model Works

Instead of adding the entire approved salary increase to an employee's fixed salary, Accenture will split the increment into two parts.

For example:

• If an employee is approved for a 3% salary hike:
  • 1.5% will be added permanently to the employee's base salary.
  • The remaining 1.5% will be paid as a one-time lump-sum cash payment in June.

The cash payout will not become part of the employee's recurring monthly salary.

Why Has Accenture Changed the Pay Structure?

According to an internal memo cited by PTI, the company said the revised approach is intended to provide employees with immediate cash while enabling Accenture to offer permanent salary increases to a larger number of employees.

Last year, salary hikes for employees who remained at the same career level were relatively limited.

By splitting increments between permanent salary and a one-time payout, the company aims to extend base pay increases across a broader section of its workforce.

Promotion-Related Salary Hikes Remain Unchanged

Accenture clarified that salary increases linked to promotions will continue to be fully added to employees' base salaries.

The one-time cash payout introduced under the new model is separate from the company's annual performance bonus, which is paid in December.

Performance Will Continue to Drive Compensation

The company said compensation decisions will continue to be based on several factors, including:

• Skills and expertise
• Individual performance
• Business impact
• Professional behaviour

Employees who demonstrate stronger performance and contribute more significantly to business outcomes will continue to be considered for higher compensation.

Employees Seek Clarity on Taxation

The revised salary model has received mixed reactions from employees.

While some welcomed the immediate cash benefit, others questioned whether the new arrangement would remain in place beyond this year's salary cycle.

Several employees have also sought clarification on how the one-time cash payout will be taxed and whether it could affect future salary calculations and retirement benefits.

Key Highlights

• Accenture has introduced a new salary hike model for its global workforce.
• Half of an approved increment will be added to base salary.
• The remaining half will be paid as a one-time cash payout.
• The policy applies to around 3.5 lakh employees in India.
• Promotion-related salary increases will continue to be added fully to base pay.
• Employees have raised questions about taxation and the long-term impact of the new structure.

FAQs

What is Accenture's new salary hike policy?

Under the new model, 50% of an approved salary increase will be added to an employee's base salary, while the remaining 50% will be paid as a one-time cash amount.

Who will be affected by the new pay structure?

The revised compensation model will apply to Accenture's global workforce, including approximately 3.5 lakh employees in India.

Will promotion-related salary hikes also be split?

No. Accenture has confirmed that salary increases received through promotions will continue to be added fully to employees' base salaries.

Is the one-time payout part of the annual bonus?

No. The cash payout is separate from Accenture's annual performance bonus, which is paid in December.

Why has Accenture introduced this model?

The company says the change allows it to provide immediate cash benefits while extending permanent salary increases to a larger number of employees.