If it is implemented for the first time, we can also take the help of the Accounts department on the components and hike effects and later decide on whether to go for annual performance rating (A, B, C, & D, etc.). For A, you can fix around a 20% hike, for B, you can fix it around a 15% hike on CTC; it depends on your business turnover and profit-sharing with employees, i.e., depending on your comfort. You can also choose to base it on the Basic pay, for which you need to have separate slabs for each level/designation (around 10-15 slabs for each level/slab). For example, if starting basic for Rs. 4500/- as the basic salary of an executive, the next level hike in the basic can be Rs. 500/- after completing the first year, the second year can be Rs. 700, the third year can be Rs. 900, etc.
Raj:)