Accenture rolls out new pay hike model, balancing base salary with one-time payouts 

Accenture has revised the way it delivers salary hikes, splitting approved increments equally between base pay and a one-time lump-sum payout in an effort to extend salary increases to a larger pool of employees.

The new structure will be implemented as part of the company's June compensation cycle and applies to its global workforce, including around 3.5 lakh employees in India. 

Under the revised compensation framework, employees receiving approved salary increases will get 50% of the hike as a one-time cash payment in June, while the remaining 50% will be added to their base salary.

According to an internal memo, the move is aimed at providing employees with more immediate cash while enabling the company to offer base pay increases to a broader group of staff, PTI reported. 

The company said it had offered only limited "stay-at-level" salary increases last year but has adopted a different approach this year by significantly increasing the number of eligible employees and splitting the payout between permanent base pay and a lump-sum payment. 

Promotion-linked salary increases, however, will continue to be fully reflected in base pay, while the one-time payout will remain separate from the annual bonus cycle held in December. Compensation decisions will continue to be based on employees' skills, performance, impact and behaviour. 

For instance, an employee approved for a 3% salary increase will see 1.5% added to base pay, with the remaining 1.5% paid as a one-time lump-sum amount in June. 

The revised structure has drawn mixed reactions from employees, with some seeking clarity on whether the arrangement is a one-time measure and on the tax treatment of the lump-sum component.