Flipkart has opted to limit salary increase to only 70 per cent of its employees as way to balance the needs of both employees and the organisation. This means that approximately 5,000 of its senior employees will not receive any raise this year, as reported by Money Control.
The ecommerce company led by Walmart, has decided not to provide salary increase to its senior-level employees, including those in Grade 10 and above categories such as managers and vice presidents. This decision was made to preserve cash flow and prioritise the company’s profitability, according to sources.
Reportedly, on February 22, an email was sent to employees informing them that those at Grade 10 and higher levels would not receive a salary increase. Additionally, Flipkart stated in a statement that due to the current macroeconomic climate, they aim to be cautious in managing their resources while considering the best interests of their employees. As a result, about 70% of their workforce will still receive a pay raise.
Recently, the company has finished its annual performance evaluations, and salary increase is scheduled to take effect from April 1. However, as per Money Control, bonus payouts and employee stock options are proceeding as scheduled for employees of the Walmart-owned company. Flipkart remains committed to improving the value for all employees by implementing employee-centred policies, offering regular training and skills programs, conducting promotion cycles, creating wealth for ESOP holders, and providing additional benefits such as medical insurance.
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