- Company shifts part of compensation into performance-linked annual awards
- Move extends bonus timing to as late as May, triggering internal unease
Alibaba Group has overhauled its compensation structure, folding the traditional 13th-month salary into its annual bonus system and delaying payout timelines by several months, according to an internal memo issued May 27.
Under the new policy, which takes effect from fiscal 2027 (April 1, 2026 — March 31, 2027), the company will merge the standalone 13th-month salary into a renamed component called the “Together Forward Annual Award,” alongside a separate performance-based bonus.
Bundled into annual bonus
The memo said the combined system will unify previously separate payouts into two clearly defined categories: the “Together Forward Annual Award” and the performance annual bonus, both shown separately under the new framework.
The most notable change is timing. The 13th-month salary, previously paid between December and January, will now be bundled into the annual bonus cycle and distributed together with performance bonuses between April and May.
That effectively extends the gap between earnings payouts, with employees facing a period of up to roughly 15 months without receiving the consolidated bonus.
Staff who leave before the end of the fiscal cycle may forfeit part of the payment, a change that has been widely interpreted internally as increasing retention pressure.
Growing retention pressure
The memo stated that, given the previous 13th-month salary was based on the calendar year while the annual bonus follows the fiscal year, the inaugural “Together Forward Annual Award” will be paid during the unified 2027 bonus distribution period.
Employees who remain with the company from January 1, 2026 to March 31, 2027 will be eligible to receive 1.25 months of the new award, according to the policy.
The restructuring has drawn mixed reactions internally, particularly amid existing concerns over widening bonus disparities.
In the most recent fiscal year, employees in high-performing units—especially Alibaba’s AI and cloud computing affiliates—received significantly higher bonuses, while lower-performing teams and non-core divisions reportedly saw minimal or no payouts.
Performance-weighted rewards
The company’s shifting compensation approach reflects a broader trend toward performance-weighted rewards, reinforcing incentives for top contributors while intensifying internal competition.
“To get the full payout, you not only have to outperform colleagues, you also have to outlast the calendar,” one Alibaba user wrote in one of the most widely-upvoted comments on social media.
The policy applies only to mainland China-based employees, with staff in Hong Kong, Macau, Taiwan and overseas operations subject to local regulations or regional compensation rules.
