Labour Law & Hr Consultant
Rahul Chhabra
Hr Professional
+1 Other

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What is the general practise and rules regarding bringing the revised compensation into effect? For eg: If an employee joins on Jan 7, 2018 on completion of his one year of service his compensation gets revised. Should that become effective from Jan 7, 2019 or Feb 1, 2019?
What happens if the DoJ is post 20th of the month?

I am not able to understand the phrase "revised compensation" used in the post. May be what the poster actually means is the annual increment. If my presumption is correct, the normal practice for the sanction of annual increment could be the passage of one year with reference to the original date of joining of the employee in the post. For the sake of administrative convenience, in government departments, sanction of annual increment other than the first increment is linked to the first day of the quarter in which the original joining date falls. Thus, it depends upon the increment policy and practice of every organization.
From India, Salem
Dear Anony,
Your query is ambiguous. Yet would like to add that most of the private organizations follow a fixed appraisal cycle. Compensation for everyone is revised from one particular date; and is effective from the 1st of that month. The increment is pro-rated basis one's date of joining.

From India, Delhi
Thank you for your responses. By revised compensation I mean the annual hike that the employees get after completion of one year of service. We don't have a fixed appraisal cycle in my company and the appraisal is done when an employee completes a year at work. In that case if someone has joined in the middle of the month, the hike (revised compensation) becomes effective from the following month rather than the same month. Is that the general practice?

Hi, It should effective from Jan 7, 2019. The salry calculation will pro rata basis.
From India, Chennai
Hi Anonymous,
This depends on the policy each Co. follows. It also depends on the nature of business. BPO's have a policy of daily productivity assessments and error percentages. Other Companies have yearly appraisals.
A )Some Companies follow a practice of revising salary on completion of Probation period.
B) Some other Cos follow a practice of revising the salary after completion of one year. In such case, the HR personnel will need to keep a track of which employee has completed one year when. This will also have assessment of appraisal, making and printing letters every month. hence this practice is administratively inconvenient.
C) The other practice is to fix the Appraisal & Increment cycle for April to March every year. The employees who have joined during part of the year get appraised on prorate basis.
Let me take 2 illustrations for your easy reference.
a) An employee joins on 10th June 2018. The employee will be appraised for the period 10th June 2018 to 31st March 2019 and he will be due for his increment in April 2019. Depending on the process of Performance evaluation, if the Company follows that as per the individual's rating, he is entitled to 12% increment for the year, 12% is divided by 12 months and multiplied by 9 month & 21 days.
b) The employee joins on 1st February 2019 or 1st March 2019. Obviously has no appraisal within just one month ( April 2019). Hence he will be due for appraisal in April 2020. However, while appraising him in April 2020, his appraisal months need to be taken as 13 months if joined March 2019 and 14 months if joined in February 2019.
Hope this clarifies.

From India, Mumbai
The calculation starts from the date of joining to end of calender year if followed by the establishment.
From India, Mumbai
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