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 Googles 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.  Were 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 companys compensation competitive. The above changes are budget-neutral and overall were 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 Googles year-end reviews and compensation planning for 2026. The company will continue to invest in rewarding employees who make a big difference.