Performance Appraisal - giving an increment is mandatory as per law? - CiteHR
Management Consultancy

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Dear Team, Performance Appraisal is process of giving feedback, identifying strength and weakness as well as determining the job responsibilities for the employees in future. The results of such appraisal can be a basis for giving increments to employees.
Giving an increment is an organizational choice and accordingly the rise in salary can be decided based on company's profitability, employees productivity and performance, market trends for certain skills and inflation rate etc.
Does giving an increment is mandatory as per law? If so then which law governs the same.
Request your views and comments of the same.

Grant of annual increment is not mandatory as per law. Your observations in the matter are valid and proper.
Agreed it is not mandatory as per law. You need not give increment after every appraisal,but make sure that employee is happy and retained in your organization or any body's organization.
There are always options for the employee who is trained here to be poached in a similar set up with good package. Avenues to employees are aplenty now.
Also the performance appraisal system should be such a tool that it leaves no option for the employer and employee in respect of their growth and development either professionally or financially.

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