Yearly Increment Calculation

Hi All


Please tell me, how to calculate yearly increment and is there any percentage.

How to include that increment amount to the exisiting salary structure. Because, my manager asked me to prepar increment details.

(Our existing salary structure is Basic+DA+HRA+Con+Med)

Please Help.

Regards
Kanaka

Hi Kanaka

First, there is no defined percentage for increments. It depends on the performance of an employee. Still you can check the industry standards and work out your own generic percentages..

As for the formula, you need to increase is only the Basic Salary

As DA, HRA and medical is normally certain percentage of the Basic Salary, which will automatically increase alongwith the Basic.

The conveyance has to be paid according to the fuel prices. In case you pay monthly fixed conveyance, increase the same whenever there is a substancial increase in the fuel charges to the nearest round figure percentage.

Dear Ajmal


Thank you very much for your information and also I posted about branch audit in format column.

If you have any idea please let me know.

Thanks
M Kanthaswami

Please ignore my previous letter


My company asked me to audit the factory/branch. I would like to know how to audit the branch, is there any formats and also how to prepare audit report for management.

Hi Kanaka

The audit has to be defined for each company separately as the business processes are different for each industry type.

But basically you will need to do audit on following departments within the branch, You need to prepare formats, check lists for each of this separately.

1. Accounts [proper documentation, bank and cash reconciliation, all payments properly authorized etc]

2. Employee records [proper maintainance of attendance register, leave records, applications etc]

3. Stock register [cross check with the actual stock]

4. Stock taking of official furniture / assets [checking with actual and checking the conditions as well]

5. Official Documents [latest Licence from Municipal corporation / shops and establishment department, insurance etc]

6. All other business related files [customer files, contract files, vendor files etc. should be checked and seen if the company standards / policies are followed in the contracts]

I have listed just few, you can add to it depending on the functions your branchs perform.

For every audit you will have to have a different format and check lists so that non of the items is missed when an auditor goes for auditing.

hi kanaga,

If an increment of Rs.500/- is given to employee. u can create a formula like 50% of increment amount is 250 can be put in basic and 25% to convey. and 15% and 10% respectively. DA or FDA according to govt.

it varies from one industry to other industry.


murali