Hello Friends, My query is: Is increment calculated on employees Gross Salary or on base salary? Is there any law with regard to the calculation of annual increments? Thanks for the help!
From India, Delhi
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From India, Delhi
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Dear Aparna,
Generally, these days, people tend to calculate it not based on basic or gross salary but on CTC, to see how much change has been made in one's CTC structure. As far as I know, there are no legal boundaries that justify following the same process.
Regards,
Amit Seth.
From India, Ahmadabad
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508Generally, these days, people tend to calculate it not based on basic or gross salary but on CTC, to see how much change has been made in one's CTC structure. As far as I know, there are no legal boundaries that justify following the same process.
Regards,
Amit Seth.
From India, Ahmadabad
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There is no law for increments. We do it on the basis of CTC, i.e., 12% of CTC, 15% of CTC, 20% of CTC, etc. In such cases, there are existing bifurcation formulas to allocate increments in basic, allowances, reimbursements, etc. I have seen that in the unionized sector, increments are calculated based on mutually agreed ratios.
Hope this helps you.
- Hiten
From India, New Delhi
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Hope this helps you.
- Hiten
From India, New Delhi
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Increment calculation.xls
INCREMENT LETTER.doc