Accenture has changed the way it will deliver salary hikes to employees in its June 2026 compensation cycle, splitting approved increments equally between permanent base pay and a one-time cash payment.
Under the revised structure, 50% of an approved salary increase will be added to an employee's base salary, while the remaining 50% will be paid as a one-time lump-sum amount in June.
The change is aimed at allowing Accenture to extend salary increases to a larger number of employees while also providing workers with immediate cash benefits, according to an internal memo cited by PTI.
How will the new salary hike formula work?
Talent and group leads will first decide the overall percentage increase for an eligible employee. That increase will then be divided equally between base pay and the one-time payment.
For example, if an employee is approved for a 3% salary hike, the revised structure will work as follows:
| Component | Increase |
|---|---|
| Base salary hike | 1.5% |
| One-time cash payout | 1.5% |
| Total approved increase | 3% |
The one-time payment will be made in June and will be separate from Accenture's regular annual bonus cycle, which takes place in December.
What happens to promotion-linked salary hikes?
The 50:50 formula will not apply to salary increases linked to promotions.
Accenture has said that employees receiving promotions will continue to receive the full increase through their base salary. This means the entire promotion-related hike will permanently increase the employee's fixed pay.
The company said compensation decisions will continue to be based on factors such as an employee's skills, performance, impact and behaviour.
Will the one-time payment affect the annual bonus?
Yes. According to the details shared by Accenture, both the base pay increase and the one-time lump-sum payment will be included in an employee's eligible earnings for the year. As a result, both components will count towards the calculation of the FY26 bonus.
The lump-sum payment will also be subject to standard percentage deductions for employees enrolled in programmes such as the Voluntary Equity Investment Program (VEIP) or the Employee Share Purchase Plan (ESPP).
Why has Accenture changed the model?
The revised approach follows a period of limited “stay-at-level” salary increases for employees who remained in the same role or level last year.
Accenture's new model allows the company to provide some form of increase to a larger number of employees without adding the entire approved hike to its permanent payroll costs. At the same time, employees receive part of the increase as immediate cash.
However, the new arrangement has also raised questions among employees, including whether the 50:50 structure will continue beyond the current cycle and how the one-time payout will be taxed.
For employees, the key difference is that only half of the approved hike will permanently increase their monthly base salary, while the other half will be received as a one-time payment. Promotion-linked increases, however, will continue to be fully reflected in base pay.