global IT service company Accenture has changed the rules for salary increment amid the current economic conditions. The IT company has made this change to give the benefit of salary increment to more employees. Under the new rules, the company will now add 50 percent of the salary increment to the base pay, while the remaining 50 percent will be given as a lump sum payment.
The new system has been implemented in the main salary revision cycle of June this year.
According to a company document available with PTI, this new system has been implemented in the main salary revision cycle of June this year. Under this, Talent and Group Lead will decide the percentage of total salary increment for eligible employees, which will then be divided into two equal parts. For example, if an employee gets a salary increment of 10 percent, then 5 percent will be added to his basic salary and the remaining 5 percent will be given to him as a lump sum payment along with the salary.
Employees will get the benefit of immediate cash amount due to new rules
Accenture says that with this new system, employees will get the benefit of immediate cash amount, which many employees value. Along with this, by limiting the long-term burden on basic salary, the company will be able to give the benefit of salary increment to more employees. However, this 50:50 formula will not be applicable to employees getting promotion. Like before, the entire increase in their salary will be added only to the basic salary.
The lump sum payment received in June will not be an option for the regular bonus received in December.
The IT company has also clarified that the lump sum payment given in June will not be an option for the regular bonus to be received in December. Additionally, both the increase in basic salary and the lump sum payment will be considered as part of the eligible income of the employee for the financial year 2025-26 and the bonus will be calculated on the basis of the same. Lump sum payments for employees participating in a Voluntary Equity Investment Program (VEIP) or Employee Share Purchase Plan (ESPP) will also be subject to deductions under the normal rules.
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