Microsoft will pay all of its employees a 1,000-percent bonus this year, its largest since 2008.CEO Satya Nadella says the money will help to “make sure that teachers are doing what they do best,” which is “learning,” and that it will also support Microsoft’s “digital transformation” to bring its cloud-based services and business to every user.
“We know that the education sector is one of the fastest-growing segments of our economy,” Nadellas said during a conference call with reporters.
“And so this money will be a boost to that.”
He also said Microsoft’s annual employee bonuses would be the biggest since 2008, and it would help it achieve its goal of having all employees “pay the same salary and receive the same benefits.”
“I think it’s going to be a fantastic boost to our company,” he said.
Nadellabs plans to release the announcement Tuesday.
The bonuses, which were initially announced in June, will be paid out in Microsoft’s Payroll Plus account.
It’s one of two accounts that Microsoft uses to pay employees’ wages.
The other is the employee 401(k) and the deferred compensation plan.
Microsoft also plans to pay $5 billion to its workers in 2019.
Ned Price, chief executive of the education savings account company Payroll, said Microsoft was paying its employees more than ever before and was “delivering on our promise to provide more value and more opportunities for our employees.”
“The fact that the amount we’re paying is so high is amazing to me, especially since we’ve seen this number of people who are actually paying it,” Price said.
Microsoft said that it would give its employees incentives for participating in its cloud initiatives, including incentives for sharing information and rewards for work done.
The company said that in addition to the bonuses, employees would also get “better” benefits, including health and dental coverage, and more flexible work schedules.
Microsoft will also pay a “performance bonus” of $10,000 for each new Windows 10 device it has sold, said Nadello.