Accenture Introduces New Salary Hike Formula

Accenture has introduced a revised 50:50 salary hike formula as part of its June compensation cycle, bringing a significant change to its employee appraisal process. Under the new policy, only 50 percent of an employee's approved salary increment will be added to the basic salary, while the remaining 50 percent will be paid as a one-time lump-sum amount. However, the company clarified that employees receiving promotions will be exempt from this model. The details were communicated through an internal company memo.

According to the company, the percentage of salary hikes will continue to be determined by group leaders based on employee performance and talent. For instance, if an employee receives a 3 percent salary increase, 1.5 percent will be added to the base salary and the remaining 1.5 percent will be paid as a one-time payment. Accenture believes this approach will allow salary increments to be extended to a larger number of employees while reducing long-term payroll expenses. The company also clarified that the one-time payment is separate from the annual bonus paid in December.