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Flipkart modifies increment process with merit-linked hikes for employees

Sumit Vishwakarma
New Update
flipkart employees

Walmart-owned ecommerce giant Flipkart has overhauled its salary increment policy, shifting from traditional annual raises to a new system designed to curb employee attrition, especially among its senior staff.

The company will divide salary increments into two parts, with the first part being paid out in April and the second part later in the year. This change aims to retain talent across various levels.

Merit-linked payouts introduced

Under the new scheme, merit-linked payouts will be awarded to all eligible employees, specifically targeting those in Grade 12 and below, encompassing junior and mid-management levels.


These payouts will replace the usual annual salary hike, with the increments being distributed in two bulk payments in April and October. With the help of this approach, The company intends to motivate and maintain a dedicated workforce.

Enhanced bonus scheme 

In addition, Flipkart has also announced an enhanced bonus scheme for its employees. Under this scheme, the employees will receive a 100% bonus payout from the company, a significant increase from the previous year's 80%. 

The move is expected to benefit approximately 19,000-20,000 employees across the board, excluding those from Myntra. The company's leadership believes this will further incentivize employees and contribute to a positive work environment.

ESOP allocation and cash conservation

In addition to the revised increment policy and bonus scheme, Flipkart has continued its Employee Stock Ownership Plan (ESOP) allocation.

The decision comes after a year in which the company did not offer increments to senior leadership (Grade 10 and above) as part of its cash conservation efforts. However, these leaders will be eligible for the annual bonus in 2024, the company said.

What did Flipkart say?

"At Flipkart, we have always prioritised what’s right for both our employees and the 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 a Flipkart spokesperson.