TikTok plans bigger pay hikes and cash bonuses for top performers in 2026

TikTok is planning to offer significantly higher pay rises and increased cash bonuses to its top-performing employees in 2026, according to a memo circulated by its parent company ByteDance to staff globally, as reported by Business Insider.

ByteDance plans to increase its overall spending on rewards by around 50 per cent compared with the previous performance review cycle, the report said. The enhanced rewards will include salary hikes and bonuses but will be limited to employees who receive high performance ratings, as the company seeks to retain top talent and attract new hires.

Under the proposed structure, employees who deliver strong or exceptional performance outcomes will benefit from the higher reward pool, while those with average performance ratings may not see the same increases, the report added. The additional budget has been earmarked specifically for standout performers.

The memo also stated that bonuses for employees rated as strong performers are set to rise by 35 per cent in 2026, with even higher increases planned for those assessed as exceptional. ByteDance informed staff that the approach is intended to reward employees who take ownership, deliver results and contribute directly to TikTok’s growth.

Another key change highlighted in the memo relates to the composition of rewards. A larger proportion of bonuses will be paid in cash rather than company shares in 2026, addressing employee concerns over the future value of equity-based compensation, particularly amid ongoing uncertainty in the technology sector, according to the report.

The move comes as TikTok undergoes a major transition in the US, where parts of its American operations are being spun off into a new partnership involving external investors. During such periods of structural change, employees often face uncertainty over long-term incentives, and the shift towards higher cash payouts appears aimed at reassuring top performers, the report said.

ByteDance is also reducing the vesting period for employee share awards from four years to three, allowing staff to gain full ownership of their equity rewards sooner if they remain with the company.

The changes follow similar moves by other technology giants such as Amazon, Meta and Google, which have recently increased rewards for high performers, underlining the intensifying competition for skilled talent across the sector.

ByteDance and TikTok have not issued an official statement on the matter, but the memo, as cited by Business Insider, indicates that the company is positioning performance-based rewards as a key retention and motivation strategy for 2026.