Otherwise also, owing to the inflation the rate of inputs, raw materials and services goes up. The fuel (electricity, coal, petrol, diesel, oil etc) cost is up every years. The Government services rate goes up. Taxes also have a increased bearing. Other direct and indirect expenses also go up (including salaries, wages, food, freight and cartage, communication, traveling, rents and duties etc.). The organization has to increase the price of its products/services keeping in view of all these increases. If an organization pay for all other increases, why not pay its employees, who actually toil to earn for the organization, their share of increase!!
27th October 2010 From India, Chandigarh