Flipkart tweaks increment policy; to give merit-linked payouts
According to the revised policy, the ecommerce firm will now be giving merit-linked payouts to all eligible employees who are in Grade 12 and below, which includes junior and mid-management level employees.
Ecommerce firm has amended its increment policy for this year and introduced bulk merit-linked payouts instead of the annual pay hikes.
According to a Flipkart spokesperson, the company will now be giving merit-linked payouts to all eligible employees who are in Grade 12 and below, which includes junior and mid-management level employees. Instead of giving a salary hike for a 12-month period, the employees will receive bulk payment of the increment split in two tranches, which will be paid in April and October.
"At Flipkart, we have always prioritised what’s right for both our employees and organisation at large, and this compensation review cycle is in line with this intention. We are providing compensation increase to employees getting promoted, merit-linked payments, and bonus payouts. Additionally, our stock option allocation exercise will continue as is for those who are eligible," the spokesperson added.
Apart from this, the company will also roll out 100% bonus to employees across the board.
The development was first reported by The Economic Times.
About 19,000-20,000 employees will likely stand to benefit from the scheme. The Flipkart Group, barring Myntra, has close to 22,000 employees, according to the latest figures.
As part of its cash conservation move, Flipkart did not offer increments in 2023 to senior leadership falling in the Grade 10 and above category, impacting nearly 4,500 employees. These employees will be eligible to receive annual bonus in 2024.
Flipkart has also announced ESOP allotment to all eligible employees for the year.
According to reports, the company had let go of nearly 20% staff as part of its annual performance appraisal plan in March.
In a townhall at the start of the year, Kalyan Krishnamurthy, CEO of the ecommerce firm, said Flipkart’s grocery business had grown by 50% and continues to be an area of focus for the company, with future plans to build on 'Same Day Delivery' and supply chain for order fulfilment.
Edited by Megha Reddy