Tech Desk 
Aug 01, 2024
Recently, Microsoft has announced a special one-time cash award which is an extra 10-25% to the annual bonuses for its employees.
The bonus award is for the recently completed fiscal year as a gesture to recognise the contributions and achievements of its employees for the company.
Microsoft’s chief people officer, Kathleen Hogan, circulated a memo to inform its employees that all salaried and hourly workers at the senior director level and below will be eligible for the cash award, however, the executives will not be entertained.
Read more: Microsoft urges Congress to regulate AI deepfakes amid growing concern
The bonus rate will be inversely proportional to employees’ level as the junior-level employees can get an award amounting up to 25% of their bonus, while the senior directors might get up to 10% of it.
The company will be prioritising higher percentages for employees at lower levels to ensure that all eligible employees receive a meaningful and fair distribution of this cash award that will be available to all employees in levels 67 and below.
This special bonus is in addition to the traditional merit pay increases, regular bonuses, and stock awards that Microsoft will also fund this year.
Meanwhile, the specific amounts for the special bonuses were not disclosed yet, however, it is expected that the awards will be up to thousands of dollars per employee, with those at the junior level receiving even more.
With this strategy, the tech giant will easily be able to retain its employees in the competitive AI market
