Dear all,
In our company it is not practice to give an Increment while confirm an employee.
But unfortunately, at this moment is that necessary to give confirmation increment? If yes then max how much percentage? Should we give single digit percentage increment as per performance basis?
Kindly give guidance and suggestions on this matter.

From India, Mumbai
Sr. Hr Executive
+2 Others


Dear Shreya,
Increment is not bounded with the statutory law. It is completely at the discretion of the management, the only thing you need to keep in mind is minimum wages which you need to abide with.

Venkata Vamsi Krishna Patnaik

Dear Shreya,
Beyond accepting the point stated by Mr.Manoj that there is no hard fast rule to hike a person's salary after probation confirmation,only thing you have to keep in mind his the employee is in good morale to continue in the organization.
There can be chances of employee leaving after the confirmation of services.
Increment is given to employee only to retain him and to meet the inflation in prices.
Regarding your point of percentage to be hiked it depends on your budget, may be 5%,8% or 10%.

From India, Hyderabad

As the learned members said, there is no law governing the issue except the Contract Act.If you incorporate any such clause in the letter of appointment, then you have to give. If not, no need. However, during the IT boom where recruitment of techies was in great frenzy and retention was a challenge, companies used to give joining bonuses to new joinees after some months of service in the company and they used to be incorporated in the letter of appointment.
HR & Labour Relations Adviser
Navi Mumbai

From India, Mumbai

As mentioned by other Senior Members, there is no Statutory rule or compulsion on Management to give increment at the time of Confirmation.
Though it is at the discretion of Management to consider on merit, the Management Policy has to be uniform or else there will be heartburning for those not considered. and HRD will face problems.
INTRODUCTION. (Abrevations used to save space).
I am an Ex AGM-HR&Adm.with 40+ HR,IR,LEGAL, & Admn., Works of 7 Mfg. Cos.- Steel Plant, Power, Chemical , Electronics Plants & Mines.
I am providing Consultancy on all aspects of H.R., Co., Mines, S.O., Leave, PF, ESI- Management - (in Hard/ Soft-Copy, ppt for easy Presentation, Understanding & Adoption).
I am providing below
SOLUTIONS to some of the Per. & Admin. PROBLEMS for your infn. please.
As these are imp.Rules, u may print & read them leisurely. I hope; itís informative & useful for ur P&A works.

Some Co.ís face Manpower(MP)Shortage during Festivals like Duserha, Divali etc., when 3-4 days Holidays come at a time.
This problem can be reduced by providing Optional Holidays; i.e.,
1. Republic Day, 2. May Day 3. Independence Day,
4. Gandhi Jayanthi & 5. Karnatak Rajyotsav Day

are to be declared as Compulsory Holidays;
Whereas; employees can be given Option to take Festival Holidays (5 or as per Co.Rules)in a staggered way; depending upon the urgency of work tobe regulated by HODs.
This will help Continuous Working of the Cos.(like Mfg., Prodn.,etc.,for un-interrupted Works) and ensures Min.MP to man Essential Services as most emplís donít observe all Festivals at 1 time & so, when 1 set of emplís take Holiday, other set can work & vise-versa. Thus, HODs can plan min.MP for Shift duty/ maintain Essential Services by adjusting MP to suit his needs & avoid work-stoppage etc. due to Holidays (without increasing Declared Holidays or violating N&F Holidays Act).
To Control, keep track of Optional Holidays, U have to adopt Leave Card System. Otherwise, where will u enter Holidays availed by the empls; how to keep track to ensure that empls. take only 5 out of 20 Festivals ?
Govt.declared 25 Holidays for 2018 including 5 above.
Though Biometric & Online systems exists, LC is useful for P&A Mgrs.for various purposes(Pl.see below).
As Jan. 2018 is fast approaching, pl. go thruí my HR Systems, Rules; so that U can discuss for Adoption from new year 2018.
Some Cos. still use Leave Appn.(LA) Loose Forms to take Leave every time: As LA is loose, difficulty to Check, Account, Store, keep track; to make Monthly Salary besides PAPER & Printing Cost/WASTE where hundreds of emplís work.
You can PRINT & Use LEAVE CARD (LC)-RECORD & Stop LA:. LC is handy, Seniors can always Check, Find No.of times, days Leave taken; to Calculate Monthly CL, SL,PL/EL,OH, LWOP to make Salary. LC is a Record & Statutory and cannot be manipulated like Loose LA.
1 Card for 1 Employee for 1 year.
You can introduce LC from 1.1.2018. After one year, keep old LC- in Per.File as Record to verify in future. Easy for P&A. to work out Entitlement, Balance- Leave Management & Salary preparation. It is cheap & easy to maintain. Empl. will know how often he is taking Leave & HOD can caution, Mis-use/approve on need basis. Custody-P&A.Dept.. Each HOD to keep LC to facilitate his take Leave. HR to call LC when Reqd., to update Leave Regr, make Salary- Month-end, & in work out Leave earned, availed & balance & post in LC of all employees and update Leave Regr.
As the L.C. is frequently checked by HRM, HODs, Auditors & empl., GM / MD can rely on L.C. as an accepted Record to crosscheck Leave, DOJ, & approve FS & avoid empl. disputing while making F.S.
Absenteeism is becoming a serious problem in some Cos. HRMgr. is blamed for laxity. It can be controlled by using above Form. HRM to take Action against erring employee or when a HOD sends A.N.F. to him. Proper Disc.Procedure tobe followed for AOS lest; Court may nullify Termination as void.
(As per New PF & ESI Notifications (PF Form-11 to replace earlier Form 2 & Form 13), Cos. have to collect & provide all employees personal details + their Family, dependents, Nominee + Aadhar, Pan Card, Bank dtls.etc. & to keep in Per. Files; & to show to Officials to get benefits to employees in critical times).
1. Apptt. Order which binds Employer-Employee Relation do not contain essential t & c. of Service (Min. t & c -30 points). Pl. check No. of points in ur A.O. If not issued; pl. issue now to regulate/ Regularize Employment Relation as required under Labour Acts.
2. Existing Co. Application / Bio-data Form not providing imp. dtls.of all emplís, Family, Dependants, Nominee, Person to Contact in Emergency to update / furnish details in Statutory Returns to F.I., L.I.,P.F.I., ESI, Gratuity, HRIS etc.,(My NEW BIO-DATA FORM will help to collect all such infn.50 Points. Some Cos. adopted them as their Co.Appn. had less than 20points. Pl.check no. of points in ur Co.Appn. Form).
Where Co.Appln./Biodata was already collected while Joining; subsequent changes in Per.Infn. to be collected from all emplís; using P.I.C.N. Form.
However, many P&A Mgrs. donít have this Form & face problems to collect/give Per.dtls. to GM/MD, Govt.Officers etc. as following current infn. is missing-
1. No Present Address to send Notice to X,
2. Mobile No. changed & unable to contact X
3. No Nomineeís detls.or dtls. of Person to contact
in Emergency; to Notify accident etc.
4. No Nomineeí detls. to send payment of deceased X
5. No detls. of Marriage/Family, Children, dependents
6. No detls. of Aadhar,Pan Card for PF, ESI, I.Tax etc.
7. No detls. of latest Addnl. Qlfcn. etc., to
review Career Growth, Spl.Increment etc.,
As the above infn. have changed after joining/ giving Ist Bio-Data,and if Per.infn. not collected for 3-4 yrs., pl.make all emplís to fill & submit P.I.C.N. now so that U will have all employees dtls. in one Form (instead of piecemeal) to update Statutory Returns, PF, ESI, HRIS, Per.files etc.
My NEW P.I.C.N. FORM will help you to collect all such one Form.
I have developed 100+ Imp. HR SYSTEMS, RULES with my Exp. in 7 different Mfg.& Mines Cos., in Bellary, Chitradurga, Bílur, Chennai, Hyd., & as Secretary for ISO Certification. You may adopt them to improve your P&A. Works, preserve them as Statutory Records to comply with Labour Acts & reduce Legal Cost.
I can provide Soft & Hard copy of
BASIC RULES, FORMS to Professionally Manage all P&A. Works- + Procedures for Adopting:-
PA, OD, OP, GP, VP, TA, LTA, Resignation, Exit Interview, Clearance Certificate, F & F.S.
SHORT & LONG LEAVE Rules, Regr., P.L. Rules- Encash, Appn.Form, MB Rules, Appn.Form, Co.Off Rules +Regr. Appn. Form, Clubbing, W-Off., L.W.O.P.,
S.O. Certification Procedures, Letrs.Forms to Labr.Commr., List of DUTIES, MIS-CONDUCTs, Essential Services, All Service Rules, Forms, Bonds, Deeds, Contracts, Agreements etc.
Ė Provided to Group Cos. to SET UP H.R.Dept. where No P&A. Dept., Per.Files existed, No Co.Appn., Appt. Order, S.O., Leave & Service Rules, ISO Forms existed to Regularise Services of Emplís. working for many yrs.
Most Cos. Hire Experts to train existing Officers to improve the working of the Cos. MOST VALUABLE ASSET; the HUMAN RESOURCES & to solve HR problems.
Thanks. Pl.discuss with your concerned & reply to share more / Recommend to your friends in other Co.s by forwarding this mail.
With Kind Regards,
C.Neyimkhan, HR&Mgmnt Consultant&Advocate,(Ex-AGM-HR&A)40yrs.exp.
Ph: 9535470460- E-Mailid:
Ex-Member, NIPM, Calcutta, Ex- Tr.-Member, I.I.M., B;luru.
Languages known: Kannada, Tamil, Telugu, Malayalam + Hindi & English

From India, Mumbai

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