If it is implemented for the first time, we can also take the help of Accounts dept 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 20% hke for B you can fix it around 15% hke on CTC it depends on your Business turn-over and profit sharing with employees .i.e, depending on your comfort) or on Basic pay for which you need to have separate slabs for each level/Designation (around 10-15 slabs for each Level/slab, if starting basic for ex: Rs.4500/- basic salary of an executive the next level hike in the basic can be Rs 500/- after completing first year second year can be Rs.700, thrid year can be Rs.900 etc., ).
Raj:)