Accenture issued Memo to all employees worldwide…

Global professional services company Accenture has introduced a revised compensation approach for its June salary review cycle, impacting its workforce of more than 780,000 employees worldwide.

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Under the new framework, employees receiving stay-at-level salary increases will get only half of their approved hike added to their base salary, while the remaining half will be paid as a one-time lump-sum amount in June.

According to an internal memo reviewed by media reports, the move is designed to provide employees with immediate cash benefits while helping the company manage long-term payroll costs amid ongoing economic uncertainties.

How the New Structure Works

Under the revised model, talent leads will continue to determine salary increases based on employees’ skills, performance, impact, and behaviors. However, the approved increase will now be divided equally between base pay and a one-time payment.

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For example, if an employee is approved for a 3% salary increase, only 1.5% will be reflected in the employee’s base salary, while the remaining 1.5% will be paid as a lump-sum amount during the June compensation cycle.

The company clarified that promotion-related salary increases will continue to be fully incorporated into base pay and will not be affected by the new arrangement. Additionally, the lump-sum payments are separate from annual performance bonuses distributed during the December rewards cycle.

Focus on Broader Pay Coverage

In the memo, Accenture noted that last year it provided limited stay-at-level salary increases. This year, the organization plans to significantly expand the number of employees eligible for such increases.

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The company stated that the revised structure enables it to provide base-pay increases to a larger group of employees while maintaining financial discipline in the current macroeconomic environment. It also highlighted that many employees have expressed a preference for receiving more immediate cash compensation.

Mixed Employee Reactions

The announcement has generated mixed reactions among employees. While some welcome the immediate cash benefit offered through the lump-sum payout, others have raised concerns regarding the long-term impact on salary growth since only half of the increase becomes part of recurring base pay.

Questions have also emerged around whether the arrangement is a temporary measure and how the lump-sum component will be taxed. As of now, the company has not publicly indicated whether this compensation structure will continue beyond the current cycle.

The move reflects Accenture’s broader focus on balancing employee rewards, workforce investments, and cost management as it continues its strategy of leading AI-driven business transformation while navigating a challenging global economic landscape.

Read Memo Copy

Our strategy is to be the reinvention partner of choice for our clients and lead in the safe, widespread adoption of AI; and to be the most client-focused, AI-enabled great place to work for Reinventors. Thank you for driving growth and value for our clients as we deliver on this strategy and for helping our Reinventors achieve their aspirations.

As you know, 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 we are delivering the increase for each Reinventor in two parts: half as a base pay increase and half as a one-time lump sum paid in June.

This allows us to provide our Reinventors with immediate cash, which many people have shared they value, and allows us to provide more people with base pay increases while managing our overall payroll in light of the current macro environment.

Promotion increases will continue to be delivered entirely through base pay, and lump sum payments do not replace our bonuses awarded as part of the December cycle.Rewards decision-making

As a talent lead or group lead, you are responsible for making rewards decisions based on our people’s skills and performance — including impact and behaviors.

Talent leads will make one decision on the overall increase and that will be split 50:50 between a base pay increase and a one-time lump sum payment.

For example: If the talent lead decides to provide an individual a 3% increase, that will result in a 1.5% increase to base pay, and a 1.5% lump sum payment.

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