Accenture Announces New Salary Structure With Half Pay in Salary and Half in Cash
Accenture Announces New Salary Structure – The IT services major’s new pay structure for eligible employees has put Accenture’s salary structure in the news. The new system will split approved salary increases equally between a permanent increase in base salary and a one-time lump sum cash payment. The company says the move is intended to reward more employees while keeping long-term payroll costs in check.
How the new salary structure functions
The new model has been rolled out with Accenture’s primary June compensation cycle. Talent and group leads decide the overall percentage of an employee’s salary hike and the hike is evenly split.
In cases where an employee gets a 4% increase in salary, 2% will be added to their monthly base salary, and the other 2% will be paid as a one-off cash payment. The company says this gives employees cash immediately, while also allowing more people to receive annual pay raises.
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The new compensation model will apply to employees receiving annual salary increases across Accenture’s global workforce of more than 780,000 people, including roughly 350,000 employees in India.
But that 50:50 split won’t be the case for employees who get promoted. Salary increases for promotions will still be applied fully to base pay. The company also said the one-time cash payment is separate from its regular December bonus, and that both the salary hike and lump-sum amount will be included in the calculation of eligible FY26 bonus earnings.
Why Accenture Developed This Model
The new salary structure will allow it to reward more employees without significantly raising fixed payroll costs in an uncertain macroeconomic environment, the company said. The lump-sum payment is an extra financial benefit over the normal salary increase, as many employees prefer to be paid in cash right away, the company said.
The move comes as big tech firms generally move to balance employee rewards with cost management while still investing in retaining their workforce.
References
Business Standard (PTI): Reported on new 50:50 salary hike structure, promotion policy and example on how to calculate salary hike.
The Economic Times (PTI): The reason behind the revised compensation model, June appraisal cycle and bonus explained.
Times of India: Impact on employees, global workforce numbers, employee reaction to new salary structure
People Matters: Provided workforce data and background on the impact of the revised salary structure on employees globally.
