Bengaluru: Accenture has introduced a revised payout structure for salary increases in its June compensation cycle, affecting its global workforce of over 780,000 employees, including approximately 350,000 in India. Under the new approach, employees will receive 50% of their approved salary increase as a one-time lump-sum payment in June, while the remaining 50% will be incorporated into their base pay.
Mixed Reactions from Employees
The move has elicited mixed reactions from employees, some of whom expressed concerns over limited clarity regarding whether the arrangement would be a one-time measure and how the lump-sum component would be taxed. However, sources familiar with the matter clarified that the change is unrelated to labour code provisions.
Company's Rationale
According to an internal memo reviewed by TOI, the company stated that the revised structure aims to provide employees with more immediate cash while helping manage costs. The memo read: "June is our primary cycle for promotions and base pay increases. Last year, we gave limited stay-at-level increases, and this year we are taking a different approach. We are both significantly increasing the number of people who receive them and delivering the increase in two parts: half as a base pay increase and half as a one-time lump sum paid in June." The company added that this approach allows it to provide employees with immediate cash, which many value, while extending base pay increases to a larger number of employees.
Clarifications on Promotion and Bonuses
Accenture clarified in the memo that promotion-related salary increases will continue to be delivered entirely through base pay. Additionally, the lump-sum payments are separate from annual bonuses awarded during the December compensation cycle. Talent leads will continue to make compensation decisions based on employees' skills, performance, impact, and behaviours.
Illustrative Example
The memo provided an example: if an employee is approved for a 3% salary increase, 1.5% will be reflected in base pay, while the remaining 1.5% will be paid as a one-time lump sum. An email sent to Accenture did not elicit a response until press time.
