Internet search giant Google Inc. is giving its 23,300 employees a 10 per cent pay raise starting next year.
Google is giving its employees an across-the-board 10 per cent pay raise for next year.Google is giving its employees an across-the-board 10 per cent pay raise for next year. (Paul Sakuma/Associated Press)

In an internal email to employees, CEO Eric Schmidt said they can expect the increase to come in regular paycheques starting in the new year.

"This salary increase is global and across the board — everyone gets a raise, no matter their level, to recognize the contribution that each and every one of you makes to Google," Schmidt said in the email, first reported by technology website Silicon Alley insider.

Employees worldwide with the Palo Alto, Calif.-based company will also all receive a $1,000 holiday bonus, which the company will pay taxes on. Based on current employment levels, the bonus alone will cost the company $23 million US.

The company posted costs of $4.7 billion US on $7.2 billion in revenue in the most recently completed quarter, but filings don't break down how much of that is tied to compensation.

The company pitched the move as being an attempt to reward hard work, but watchers say it is also a shrewd retention plan. The company has seen a number of high-profile defections to rival Facebook in the past year.

Despite the losses of some names, the company has added 3,500 employees this year.


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