Accenture changes salary hike formula to reward more employees. Here's what it means

Accenture has introduced a new salary hike structure that will divide pay increases equally between a permanent increase in base salary and a one-time lump-sum payment. The revised model is designed to reward a broader group of employees without significantly increasing the company's long-term payroll commitments.

According to an internal memo reviewed by PTI, the new compensation framework will be rolled out during Accenture's primary June compensation cycle and comes as companies continue to balance employee rewards with cost discipline amid a challenging macroeconomic environment.

How the new salary hike model will work

Under the revised framework, talent and group leads will first determine an eligible employee's overall salary increase.

The approved increase will then be split equally between:

• A permanent increase in base salary
• A one-time lump-sum payment

For example, an employee approved for a 3% salary hike will receive:

• 1.5% added to base pay
• 1.5% paid as a one-time lump-sum amount

According to the memo reviewed by PTI, the revised approach aims to provide employees with immediate cash benefits while allowing the company to spread salary increases across a wider employee base.

Why Accenture is changing its compensation approach

The company said many employees value immediate cash payouts alongside long-term salary growth.

By splitting the increase between fixed pay and a one-time payment, Accenture expects to reward more employees without substantially increasing recurring payroll costs.

The move reflects a broader focus on balancing employee compensation with financial flexibility as businesses navigate continued economic uncertainty.

Who will not be affected

The revised structure will not apply to every salary increase. According to the internal memo:

• Employees receiving promotions will continue to receive their entire salary increase as base pay.
• The one-time lump-sum payment will not replace Accenture's regular performance bonuses paid during the December compensation cycle.

This means promotion-related salary revisions and annual performance bonuses will continue to follow their existing structures.

Impact on bonuses and employee plans

Accenture has also clarified how the revised model will be treated for annual incentive calculations.

Both the base pay increase and the one-time lump-sum payment will be included in an employee's eligible earnings for the year and considered while calculating the FY26 performance bonus.

The company also said the lump-sum payment will remain subject to the standard percentage deductions applicable to employees participating in:

• Voluntary Equity Investment Program (VEIP)
• Employee Share Purchase Plan (ESPP)

Balancing employee rewards with cost management

The revised compensation model signals a shift in how companies structure salary increases during periods of tighter cost control.

Rather than limiting salary hikes to fewer employees, Accenture's approach seeks to distribute rewards more broadly while containing the long-term impact of higher fixed salaries.

As organisations continue to reassess compensation strategies in an uncertain economic climate, hybrid pay models combining permanent salary increases with one-time payouts may receive greater attention from employers looking to balance talent retention with sustainable payroll management.