Accenture has introduced a new salary increase structure that will split approved pay raises between permanent base pay increases and one-time lump-sum payments, affecting its global workforce of more than 780,000 employees, including approximately 350,000 employees in India.
The revised approach will take effect as part of the company's June compensation cycle and represents a significant change in how salary increases are distributed across one of the world's largest professional services firms.
According to an internal memo reviewed by The Times of India (TOI), employees receiving approved salary increases will receive 50% of the increase as a one-time lump-sum payment in June, while the remaining 50% will be added to their base salary.
The company said the new structure is designed to provide employees with quicker access to cash while enabling it to extend salary increases to a larger group of employees.
New approach to annual salary increases
The change comes after a year in which Accenture provided limited pay increases to employees who remained at the same level.
In the memo reviewed by TOI, the company explained that it is taking a different approach in 2026 by expanding the number of employees eligible for increases while changing how those increases are delivered.
"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," the company said in the memo.
Accenture added that the revised model would allow it to provide employees with immediate cash, which it said many employees value, while also distributing base pay increases more broadly.
How the revised structure works
The company provided employees with an example to explain the revised compensation framework.
Under the new model:
- Employees receive 50% of an approved increase through base pay
- The remaining 50% is paid as a one-time lump-sum payment
- The lump-sum payment is issued during the June compensation cycle
- Promotion-related salary increases continue to be delivered entirely through base pay
- Annual bonuses remain separate from the new arrangement
For example, if an employee receives approval for a 3% salary increase, only 1.5% will be reflected in base salary, while the remaining 1.5% will be paid as a one-time cash amount.
The company also clarified that the lump-sum payments are separate from annual performance bonuses, which continue to be awarded during the December compensation cycle.
Employees seek clarity on long-term impact
According to TOI, the move has generated mixed reactions among employees.
Some employees reportedly expressed uncertainty about whether the arrangement would be a one-time measure or become a permanent feature of future compensation cycles.
Questions were also raised about how the lump-sum component would be taxed and how the revised structure could affect long-term earnings growth, given that only half of the approved increase becomes part of an employee's recurring salary.
People familiar with the matter told TOI that the compensation change is not linked to India's labour code provisions.
Compensation decisions remain performance-based
Accenture said compensation decisions will continue to be made by talent leads based on established criteria.
The company stated that salary increase decisions will continue to consider:
- Skills and capabilities
- Individual performance
- Business impact
- Employee behaviours and contributions
The revised payout mechanism changes how approved increases are delivered rather than how compensation decisions are made.
Balancing employee rewards and cost management
The move highlights how large employers are increasingly rethinking compensation strategies amid evolving workforce expectations and cost pressures.
For Accenture, which employs more than three-quarters of a million people globally, even small changes to compensation structures can have a significant impact across its workforce.
Whether the revised model becomes a longer-term approach will likely depend on employee response, business conditions and future compensation planning cycles. For now, the June pay review marks a notable shift in how one of the world's largest employers distributes salary increases to its workforce.