Dublin: Global technology and consulting major Accenture has introduced a new salary increment model that will split annual pay hikes between an increase in base salary and a one-time lump-sum payment. The revised compensation structure will be implemented as part of the company’s June salary review and will apply to its global workforce, including nearly 3.5 lakh employees in India.
The move marks a significant change in the company’s compensation strategy and is aimed at providing employees with more immediate cash while enabling Accenture to extend base salary increases to a larger section of its workforce.
How the new salary hike model works
Under the revised policy, approved annual salary increases will no longer be added entirely to an employee’s fixed pay.
Instead, 50 per cent of the approved increment will be incorporated into the employee’s base salary, while the remaining 50 per cent will be paid as a one-time lump-sum amount.
For example, if an employee receives an approved 3 per cent salary hike, only 1.5 per cent will be added to the fixed annual salary. The remaining 1.5 per cent will be paid separately as a one-time cash payout during the June salary cycle.
The company believes the approach will offer employees quicker access to additional earnings without significantly increasing long-term payroll costs.
Why Accenture is making the change
According to the company, the revised compensation model is intended to balance employee rewards with broader workforce coverage.
Accenture said the split-pay approach allows it to distribute permanent salary increases to a greater number of employees while also delivering an immediate financial benefit through lump-sum payments.
The company noted that during the previous salary review cycle, only a limited number of employees who remained at the same career level received base salary increases.
By restructuring the increment process, Accenture expects more employees to become eligible for permanent salary revisions.
Greater flexibility in compensation
The new system provides the company with greater flexibility in managing compensation during periods of economic uncertainty and changing business conditions.
Instead of committing the full increment to recurring salary expenses, a portion is delivered as a one-time payment, helping manage long-term compensation costs while still rewarding employee performance.
Many multinational companies have increasingly adopted similar compensation strategies that combine fixed salary growth with variable or one-time payments.
Such models allow organisations to respond more effectively to market conditions while maintaining competitive employee rewards.
Impact on employees
For employees, the immediate benefit is higher cash in hand during the payout month through the lump-sum component.
However, because only half of the approved increment becomes part of the fixed salary, future benefits linked to base pay—such as subsequent salary revisions, retirement contributions or certain allowances—may grow at a slower pace than under a traditional full salary increase model.
The overall financial impact will therefore vary depending on an employee’s salary structure and long-term career progression.
India remains a key market
India continues to be one of Accenture’s largest talent hubs, with approximately 3.5 lakh employees working across technology, consulting, operations and digital services.
Any changes to the company’s compensation policies therefore have significant implications for the country’s IT workforce.
The revised salary structure comes as technology companies continue to focus on cost optimisation while competing to attract and retain skilled professionals in artificial intelligence, cloud computing, cybersecurity and digital transformation.
Balancing employee rewards and business needs
Accenture’s revised compensation framework reflects a broader trend among global employers seeking to balance employee expectations with financial discipline.
By combining permanent salary increases with one-time cash payouts, the company aims to provide immediate financial support to employees while expanding the number of staff eligible for annual pay revisions.
As businesses continue adapting to evolving economic conditions and changing workforce expectations, compensation models are increasingly becoming more flexible and performance-oriented.
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