Report: Google Gives Employees Surprise $1,000 Bonus, 10% Raise

"We do believe that competitive compensations are important to the future of the company," the tech company said.

Google has given its employees a $1,000 cash bonus and raises of at least 10% which will take affect Jan. 1, 2011, the Business Insider is reporting.

The tech giant also plans to give each employee another raise equal to their target bonus for that year. Employees will also be able to receive "merit increases" based on how they perform.

And according to the report, the company has elected to pay the taxes on the $1,000 "holiday bonuses," which means all employees will be able to keep the full sum.

Google provided this statement to The Next Web: "While we don't typically comment on internal matters, we do believe that competitive compensations are important to the future of the company."

The Business Insider notes that with the company handing out $1,000 to each of its 20,000 employees, it is costing Google $20 million and the minimum 10% raise would cost at least $20 billion.

An internal memo that was reportedly sent by Google CEO Eric Schmidt and acquired by Business Insider through a "loyal reader" explained the company's surprise moves.

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