Apple Said to Issue $2,500 Bonuses to Employees After New US Tax Law

Apple told its employees on Wednesday that the iPhone maker is issuing a bonus of $2,500 (roughly Rs. 1.6 lakhs) worth of restricted stock units following the new US tax reform, Bloomberg reported, citing people familiar with the matter.

The company will begin issuing stock grants to most employees worldwide in the coming months, the report said. Apple also said it will match all employee charitable donations, up to $10,000 (roughly Rs. 6.4 lakhs) annually, at a rate of two to one.

Axios has obtained the full email sent to employees regarding the new bonuses and charity donation matching. It has been reproduced in its entirety at the end of the article.

Earlier in the day, Apple said it would make about $38 billion (roughly Rs. 2.43 lakh crores) in one-time tax payments on its overseas cash, one of the largest corporate spending plans announced since the passage of the tax cut signed by US President Donald Trump.

Apple has been under increasing pressure to make US investments since the 2016 presidential campaign, when Trump targeted the iPhone maker for making products in Asian factories.

While Apple has announced no plans to change that practice and experts say it would be economically impractical to make iPhones in the United States, the company has begun to emphasise its US economic impact, from developers who sell software on its App Store to the tens of billions of dollars per year it spends with US suppliers.

Team,

This morning we announced a new set of investments Apple will be making over the next several years, including expanding some of our existing campuses and establishing a new one. We're also extending our efforts in support of coding education, ConnectED and STEAM programs. I encourage you to read about these announcements on AppleWeb.

I'm excited to let you know that we're also increasing our investment in our most important resource - our people. You are the heart and soul of Apple and we want you to share in the success made possible through your efforts. Your dedication helps Apple make the best products in the world, surprise and delight our customers, and ultimately make the world a better place.

To show our support for our team and our confidence in Apple's future, we'll be issuing a grant of $2,500 in restricted stock units to all individual contributors and management up to and including Senior Managers worldwide. Both full-time and part-time employees across all aspects of Apple's business are eligible. Details are available on AppleWeb.

We also know how much our employees value giving back to the communities where we all work and live. I'm happy to announce that starting immediately and running through the end of 2018, Apple will match all employee charitable donations, up to $10,000 annually, at a rate of two to one. In addition, Apple will double the amount we match for each hour you donate your time. Last year, your generosity helped people around the world through causes that are important to you. I'm proud that this year we'll be able to build on that tradition of giving.

Apple's success comes from our people and I am proud to work alongside each of you. On behalf of the Executive Team, thank you for your hard work and dedication.

Tim

Written with inputs from Reuters