The change affects Accenture's entire global workforce. The revised structure applies to more than 780,000 employees worldwide, including approximately 350,000 employees in India.
Under the new arrangement, if an employee is approved for a 3% salary hike, 1.5% will be added to the base salary while the remaining 1.5% will be paid as a one-time cash payment in June.
According to an internal memo cited by PTI, the company said the new model is designed to give employees more cash immediately while allowing it to extend base salary increases to a larger number of employees. 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.
Salary increases linked to promotions will continue to be added fully to employees' base pay, and the one-time cash payment will remain separate from the company's annual bonus cycle, which takes place in December.
The company added that compensation decisions will continue to depend on employees' skills, performance, impact and behaviour.
The shift matters to working professionals because only half of a pay rise will compound into future salary calculations, affecting long-term earnings. Questions have been raised about how the lump-sum component will be taxed and how the revised structure could affect long-term earnings growth, given that only half of the approved increase becomes part of an employee's recurring salary.
The revised pay structure has received mixed reactions from employees, with some questioning whether the new arrangement is only for this year, while others have sought clarity on how the one-time payout will be taxed.
The move highlights how large employers are increasingly rethinking compensation strategies amid evolving workforce expectations and cost pressures.
