Flipkart Tweaks Increment Policy, Introduces Merit-Linked Payouts
Flipkart, the e-commerce giant, has adjusted its annual increment policy for the current year, opting for bulk merit-linked payouts over traditional pay hikes. Under the new policy, employees in Grade 12 and below, including junior and mid-management levels, will receive merit-linked payouts instead of a standard salary increase spread over 12 months.
These payouts will be distributed in two installments, slated for April and October. A spokesperson from Flipkart emphasised the company's commitment to aligning compensation practices with the well-being of employees and the organisation's objectives.
Additionally, Flipkart will continue to provide compensation increases for promoted employees, bonus payouts, and stock option allocations as per eligibility criteria. The company also plans to extend a 100 per cent bonus to all employees. However, Flipkart did not offer increments to senior leadership in Grade 10 and above in 2023 as part of its cash conservation strategy, impacting approximately 4,500 employees.
Nonetheless, these employees will be eligible for an annual bonus in 2024. Furthermore, Flipkart has announced the allocation of ESOPs to eligible employees for the current year. Reports suggest that the company implemented a 20 per cent reduction in staff as part of its annual performance appraisal plan in March.
