Accenture has revised its salary increase structure for the June compensation cycle, impacting its global workforce of over 780,000 employees. According to an internal memo reviewed by the Times of India, employees will now receive 50% of their approved salary hike as a one-time lump-sum payout in June, while the remaining 50% will be added to their base pay.
New Compensation Structure
The memo explains that the revised structure aims to provide employees with more immediate cash while managing overall payroll costs. "We are both significantly increasing the number of people who receive stay-at-level increases and delivering the increase in two parts: half as a base pay increase and half as a one-time lump sum paid in June," the company stated. Promotion-related salary hikes will continue to be delivered entirely through base pay, and lump-sum payments remain separate from annual bonuses awarded in December.
Example of the New Structure
The memo illustrated the new structure with an example: if an employee is approved for a 3% salary increase, 1.5% will be reflected in base pay, while the remaining 1.5% will be paid as a lump sum. Talent leads will continue to make compensation decisions based on employees' skills, performance, impact, and behaviors.
Mixed Reactions from Employees
This new change has drawn mixed reactions from staff, with some questioning whether the arrangement is a one-time measure and how the lump-sum component will be taxed. The company emphasized that this approach allows them to provide more people with base pay increases while managing payroll in the current macro environment.
Full Memo Excerpt
"Our strategy is to be the reinvention partner of choice for our clients and lead in the safe, widespread adoption of AI; and to be the most client-focused, AI-enabled great place to work for Reinventors. Thank you for driving growth and value for our clients as we deliver on this strategy and for helping our Reinventors achieve their aspirations. As you know, June is our primary cycle for promotions and base pay increases. Last year, we gave limited stay-at-level increases, and this year, we are taking a different approach. We are both significantly increasing the number of people who receive them, and we are delivering the increase for each Reinventor in two parts: half as a base pay increase and half as a one-time lump sum paid in June. This allows us to provide our Reinventors with immediate cash, which many people have shared they value, and allows us to provide more people with base pay increases while managing our overall payroll in light of the current macro environment. Promotion increases will continue to be delivered entirely through base pay, and lump sum payments do not replace our bonuses awarded as part of the December cycle.
Rewards Decision-Making
As a talent lead or group lead, you are responsible for making rewards decisions based on our people's skills and performance — including impact and behaviors. Talent leads will make one decision on the overall increase and that will be split 50:50 between a base pay increase and a one-time lump sum payment. For example: If the talent lead decides to provide an individual a 3% increase, that will result in a 1.5% increase to base pay, and a 1.5% lump sum payment."
