Accenture Splits Salary Hikes Between Base Pay and Lump Sum

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 value - while allowing the firm to extend base pay increases to a larger portion of its workforce without overburdening its overall payroll.

However, as per the details shared by Accenture, this 50:50 split does not apply to employees receiving promotions.

Increases tied to promotions will continue to be delivered entirely through base pay.

Furthermore, the one-time lump-sum payments will not replace the standard bonuses awarded during the December cycle.

Both, the base pay increase and the 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).