- Accenture has announced a significant change in its salary hike structure for the 2026 compensation cycle, splitting approved increments between base pay and a one-time lump sum payment.
- 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 payout.
- For instance, if an employee is approved for a 3% salary hike, 1.5% will be added to the base salary, and 1.5% will be paid as a one-time cash payment in June.
- This revised compensation structure is expected to apply to Accenture's global workforce, including around 3.5 lakh employees in India.
- The change comes amid a bloodbath in tech stocks following Accenture's lower-than-expected results, highlighting the company's efforts to manage payroll costs while rewarding employees.
- The company stated that the new model is designed to give employees more cash immediately while allowing it to extend base salary increases to a larger number of employees.
- Accenture had previously offered only limited salary increases to employees who remained at the same level last year, but this year it is widening the pool of employees eligible for such hikes.
- The one-time cash payment will remain separate from the company's annual bonus cycle, which takes place in December.
- The revised pay structure has received mixed reactions from employees, with some questioning whether the new arrangement is temporary and how the one-time payout will be taxed.
Accenture has introduced a new salary hike model for its global workforce, splitting approved increases into base pay and a one-time cash payment. Under this structure, 50% of the salary hike will be added to the base salary, while the remaining 50% will be paid as a lump sum during the June compensation cycle.124
For instance, if an employee receives a 3% raise, 1.5%% will be added to their base salary, and 1.5%% will be given as a one-time cash payout. This change aims to provide employees with immediate cash benefits while allowing the company to extend salary increases to a larger number of employees without significantly increasing fixed salary costs.3
The revised model is part of Accenture's strategy to manage long-term payroll expenses amid an uncertain economic environment. The company has stated that this approach allows it to recognize a broader segment of its workforce today while managing operational risks.
However, the new structure has received mixed reactions from employees. Some have raised concerns about the temporary nature of the change and how the lump sum will be taxed. Accenture clarified that the one-time payment is separate from the annual performance bonus, which will still be paid in December.
The company employs over 7.8 lakh people globally, including around 3.5 lakh in India, making this one of the most significant compensation policy revisions in the IT services sector this year.
“This approach allows companies to recognise and reward a broader segment of their workforce today while simultaneously managing long-term fixed payroll compounding and operational risk,” said Abhishek Bhilwaria, Partner at BhilwariaFinserv.
“The new structure applies to Accenture's global workforce of over 7.8 lakh employees, including 3.5 lakh in India, but promotions remain exempt from the split and get full base pay increases. Employee reactions are mixed, with questions about the lump sum's tax treatment and long-term impact on base salary growth.”
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