mohammad-raisa-tabassum
"What is the typical annual increment for an employee who has been continuously working for five years? I've heard that as an employee's experience grows, their rate of salary growth tends to slow down. Is this true?"
From India, Hyderabad
vmlakshminarayanan
933

Hi

Here number of years is not the primary criteria but performance of the employee for the period under review. An employee who is working for more than five years if not that productive or he /she is a average performer then good increment will not be awarded based on 5 years service alone. What counts is the performance.

The other perspective is when the salary of an employee increases on yearly basis the percentage of increment will go down compared to Juniors increment % as their salary will be less compared to Seniors.

From India, Madras
vmlakshminarayanan
933

Hi

Added to the above salary hikes are company specific. It depends on the performance of the company vis-à-vis performance of the individual employee. There is no scale. But in general employers tend to match industry norms based on the projects/work in hand.

From India, Madras
sripadhr
22

The annual increment for an employee, regardless of the number of years of service, is primarily based on performance rather than tenure. As per our company policy, salary hikes are directly linked to the Performance Management System (PMS) rating, ensuring that employees who consistently perform well are rewarded accordingly.

While experience and years of service are valued, they do not directly determine salary growth. However, we do recognize long service and loyalty through awards, such as a one-month gross or basic salary bonus, once a certain milestone in service is completed.

In short, salary progression is performance-driven, and tenure is rewarded through other recognition programs.

From India, Karimnagar
PRABHAT RANJAN MOHANTY
585

The best typical annual increment is based upon the rate of inflation from the last year to till now.
The employer need to add up the % of inflation at minimum and give an additional amount matching the performance of the employee.

From India, Mumbai
Srinath Sai Ram
610

Dear Member,
Please do not assess the Performance of your Employee based on the views of this Forum members.Increment depends upon the performance of Employee as per your Performance appraisal System, as per Industry Standards. By the way after Completion of 5 Years of Service, Employees out put has come down. Please do not use Increment to address the issue of Low performance. Are you an Employer? Please reply

From India, New Delhi
loginmiraclelogistics
1066

Unlike the practices followed in govt & quasi-govt. establishments where there is a concept of (automatic) annual increment system generally followed, private & (un) organised sector it's different. In govt. & quasi govt sectors an employee is appointed to a post carrying a specific time-scale basic pay is well indicated together with other allowances. Excepting in rare cases/employees whose performance was found to be dismal and/or attendance issues, mis behaviour / disciplinary proceedings underway etc, annual increment of pre-fixed sums (normally from the date & month of joining) used to be authorised. A very average or below par performer could get away with increment. On the other hand it's not the same in pvt. & unorganised sector where the well established firm(s) doesn't authorise automatic periodical increment to the employees, it's to be earned. Many follow 'performance appraisal' based increment authorisation systems of their own. And the periodicity, quantum vary among different firms. In this case there used to be comparative study of peers across sectors. And at the same time it's not correct to conclude that the quantum of increment diminishes as they rise in the ladder of hierarchy. There could be some instances of slow down which can't be general rule.But in an era of CTC & that employers now a days offer their 'stock options' to middle and upper level cadres it's only myth to say it slows down. These cadres are provided various other forms of incentives too which cannot be missed.
From India, Bangalore
PRABHAT RANJAN MOHANTY
585

The annual increment is not a charity that the company pays to their employees to balance the rate of inflation. Those thinks an increment company pays for performance are in dark site of business. The company has to offer the market value of the skills & postion offered by other companies are in same & similiar business. It is not mandatory to pay matching maximum values because all depends on the business and financial condition of the company.
Therefore, the company pays increment @ inflation from the last year to till the date.
The employer need to add up the % of inflation at minimum. The company pays other additional amount to match the performance of the employee.

From India, Mumbai
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