Annual Increment for Staff and Executives is always based on the comparable industries around. Comparable industries in the sense of production capacity, product, turn over, competitors wage structure etc as well as the present capacity/ capability of the Management.
If you have Performance Appraisal System is in vogue, then the increment is also based on the performance. You have not even mentioned about the nature of industry and the state in which it operates. 3rd August 2018 From India, Madras