Accenture revises pay hike strategy: How it affects you?
What's the story
Accenture, a leading global IT services provider, has revamped its salary hike strategy for the June cycle. The company is now offering a dual increase structure to more employees. The new approach was revealed in an internal memo seen by PTI. It comes after last year's limited "stay-at-level" increases and aims to reward more staff while managing payroll amid the current macroeconomic environment.
Strategy details
Understanding the new compensation structure
The new compensation structure at Accenture involves talent and group leads deciding an overall percentage increase for eligible employees.
This increase is then split equally into two parts: one for base pay and the other as a one-time lump-sum payment in June.
For example, if a 3% hike is decided, it would mean a 1.5% rise in base pay and an equal amount as a lump-sum payment.
Advantage
Benefits of the dual approach
The dual approach of salary hike by Accenture provides immediate cash to employees, a benefit many have expressed they value.
It also allows the company to extend base pay increases to a larger portion of its workforce without overburdening its overall payroll.
However, it's important to note that this 50:50 split does not apply for employees receiving promotions.
Bonus impact
Increases tied to promotions remain unaffected
Accenture has clarified that increases tied to promotions will continue to be delivered entirely through base pay.
The one-time lump-sum payments won't replace the standard bonuses awarded during the December cycle.
Both the base pay increase and the lump-sum payment will be considered while calculating an employee's eligible earnings for the year, which will count toward their FY26 bonus calculation.