Understanding Salary Increment vs. Revision: How Do Companies Decide and Which Offers Better Opportunities?

Dear All Friends,

Can you guide me about the difference between salary increment and revision? What is the criteria? Can we find out which company gives a higher revision percentage and which one offers a higher rate of increment? Then we can prepare ourselves to seize the best opportunities.

Thank you.
Regards,
Uttam Kumar
9811727408

Hi Uttam,

A revision in salary means a revision of the salary structure in all components, taking into account the IT considerations, and it is given to make a position market competitive.

An increment in salary means a routine increase in salary as a whole in a given period, generally annual. For example, if we revise a gross salary by 25%, we have to revise all the components of the salary by 25%. However, in an increment, we may add the increased amount to any component.

Tarun Singh

Hi Uttam,

To the best of my knowledge, salary increment is the percentage amount that we increase as per the company norms in the appraisal. Salary revision is done when the salary is increased by more than the percentage stated in the appraisal. In salary revision, the entire salary structure is revised and changed.

Regards,
Renu Gorka

Salary revision involves a raise in pay for all employees by whatever percentage the management decides to make the pay more attractive and competitive. It is also one of the strategies to retain high-performing employees.

An increment is generally a pay raise that may be based on performance or is a blanket raise in pay, typically by 2.5% of the base pay, and it takes place on an annual basis. Sometimes, increments are also given to deserving employees (advanced increments) as a reward for a job well done or for consistently outstanding performance. Some companies also give increments during the appointment time to ensure that the employee's pay is protected commensurate with their skills and knowledge.

Just my opinion

Hi All,

1. Salary Revision: A raise in pay for all employees by a certain percentage as per company policy or after a certain interval. For example, the 6th Pay Commission by the Government of India.

2. Salary Increment: This is a general term applicable to all employees during performance appraisals. Performance appraisal depends on an employee's overall contribution to the organization, considering not only business results but also initiatives taken, interpersonal skills, loyalty, and various other dimensions.

Your thoughts are always welcome.

Ashu

Hi Uttam,

Salary revision is a broader term used for a comprehensive review of all components of remuneration or compensation as a whole. Salary increment is only one part of the basic salary component for an increase in pay based on either a yearly basis or a time scale. This practice is common in most government and private organizations. Performance-based pay, as per the agreement or policy of the company, includes elements like sales commissions, which are integral parts of the salary.

Regards,
Sawant

Hi all,

To be comprehensive, revisions in salary are made for the purpose of external as well as internal equity as a product of job analysis and market factors. Increments are a customary periodical process of an increase in salary as a product of periodical appraisals.

Thanks, Tarun Singh 9725505114

Hi,

As correctly mentioned by Tarun, a salary revision could involve just component adjustments, but as a whole, there may be no increase. However, a salary increment means that there would be an increase in the total CTC of an employee.

Regards,
Namita