Global IT giant makes massive change to salary structure, employees will now only be paid…., not Narayana Murthy’s Infosys or Ratan Tata’s TCS, name is….

In a significant development amid the ‘layoff season’, Google is changing how it pays its employees. In the recent announcement, it has announced that it will make a major change in its salary structure and pay its employees based on their performance. In an email, John Casey, Google’s Vice President of Global Compensation and Benefits, explained that the company will give bigger bonuses and equity awards to high performers, but those with lower performance ratings may get less money. Here are all the details on the recent Google move.

The main change is that more employees will have the chance to earn the top rating, ‘Outstanding Impact’, during yearly reviews. This is different from the previous system, where most people were rated ‘Significant Impact’. Google wants to reward employees who contribute the most to its targets. 

“We’re making these changes to further reward top performers and continue our momentum across the company”, Google spokesperson Courtenay Mencini said while confirming the changes, as reported by Times of India.

Google adopts new system to reward employees

Managers will now be able to give the ‘Outstanding Impact’ rating to more people, which will affect their pay. They’ll also have more flexibility to reward those in the ‘Significant Impact’ group. However, Casey noted that the changes are ‘budget-neutral’, meaning some employees will get smaller bonuses to fund bigger rewards for top performers.

Statement from Google’s HR head

Casey also clarified that the ‘Significant Impact’ rating will still be a valuable one, and employees who earn it will still receive a bonus that exceeds their target. Google’s HR head, Courtenay Mencini, confirmed that the goal of these changes is to reward the best employees while keeping the company’s compensation competitive.

“The above changes are budget-neutral, and overall we’re continuing to invest in comprehensive and highly competitive compensation and benefits,” Casey concluded in his email to staff, as per the report.

These changes are part of a larger trend in the tech industry, where companies like Microsoft and Meta are also raising performance expectations. The new system will influence Google’s year-end reviews and compensation planning for 2026. The company will continue to invest in rewarding employees who make a big difference.

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