Global IT and consulting giant Accenture has introduced a new way of giving salary hikes to its employees.
Under the revised compensation model, employees receiving a pay increase will get only half of the hike added to their regular salary, while the remaining half will be paid as a one-time lump-sum amount.
The new system will apply to Accenture’s global workforce of more than 780,000 employees, including around 350,000 employees in India.
The move comes at a time when many large companies are looking for ways to balance employee rewards with cost management.
How Will the New Salary Hike System Work?
Traditionally, the entire salary hike received by an employee was added to their base salary.
Under the new model, the approved increase will be split into two equal parts.
For example, if an employee receives a 4% salary hike:
2% will be added permanently to the base salary.
The remaining 2% will be paid as a one-time cash payout.
This lump-sum payment will be given during the June 2026 compensation cycle.
Accenture has clarified that this payment is separate from annual performance bonuses, which will continue to be paid in December.
Why Has Accenture Made This Change?
According to the company, the new approach is designed to provide employees with immediate cash benefits while allowing salary increases to reach a larger number of workers.
The company believes many employees value receiving extra cash upfront, especially during uncertain economic conditions.
At the same time, the model helps Accenture manage its long-term payroll expenses while continuing to reward employee performance.
Promotions Will Not Be Affected
There is an important exception to the new policy.
Employees who receive promotions will continue to get their entire salary increase added to their base pay.
Their hikes will not be split between salary and lump-sum payments.
This means workers moving to higher positions will still enjoy the full long-term benefit of their revised salaries.
Employees Have Mixed Reactions
The announcement has received mixed responses from employees.
Some workers welcome the idea of receiving extra cash immediately, which can help with short-term financial needs.
However, others are concerned about the long-term impact.
Since only half of the hike becomes part of the base salary, future increments, retirement benefits, and other salary-linked calculations could be based on a lower amount than before.
Questions have also been raised about taxation and whether this compensation model will continue in future years.
More Employees Could Receive Salary Hikes
One of the key goals of the new structure is to expand the number of employees eligible for salary increases.
Accenture has indicated that more employees may receive “stay-at-level” pay hikes compared to previous years.
The company says compensation decisions will continue to depend on several factors, including:
Employee performance
Skills and expertise
Business impact
Overall contribution to the organization
What Does This Mean for Employees?
The new compensation model reflects a growing trend among large multinational companies to offer greater financial flexibility while still rewarding employees.
For workers, the biggest advantage is receiving part of the salary increase as immediate cash.
However, the long-term impact will depend on how future salary hikes are calculated and whether the policy remains in place over the coming years.
For now, Accenture employees can expect salary hikes to arrive in two parts—one that increases monthly salary and another that provides instant cash in hand.
