E-commerce major Flipkart has rejigged its increment policy, i.e., the company is handing out merit-linked payouts in two tranches, along with 100 per cent bonus payout to all eligible employees.

The merit-linked payouts are happening in April and October respectively, i.e., the employees will get two lump sum payments equivalent in value to salary increase which was otherwise paid out throughout the year.

The company has also rolled out 100 per cent bonuses to all its employees this year. Employees who are promoted will receive increments as usual, across grades. The company has enabled ESOP allocation to drive wealth creation.

The details of the new compensation structure have been sent out by Flipkart CEO Kalyan Krishnamurthy to employees in a letter. 

“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 increases 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,” said Flipkart in its statement.

Flipkart is also in the middle of raising $1 billion in fresh funds, reported businessline. Retail giant Walmart has invested $600 million, confirmed the company.

While, according to a latest report by AllianceBernstein, Flipkart continues to dominate the e-commerce segment with 48 per cent market share.

Last year, Flipkart had paused hikes for 30 per cent of its staff, including senior leadership. In January this year, as part of performance reviews, Flipkart was looking to trim its workforce which could have resulted in 5-7 per cent decrease in the total team size by March-April. 

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