New Employee Joined 7 Months Ago: Are They Eligible for This Year's Increment?

Whether an employee will be covered under yearly increment, suppose he had joined 7 months back, will be included in that yearly increment.

By Sambath

Hi,

It depends on the company policy defined. Here, there are two options:

1. Yearly increments upon the completion of seven months along with others on a pro-rata basis.
2. Give an increment upon the completion of one year of service and affect the general yearly increment.

The first option is preferred for administrative purposes, and employees also feel happy and part of the organization as well.

Regards,
Rajat Joshi

Hi Sampath,

Increment purely depends on your company policy. It does not have any rules that an employee who has not completed one year of service should not be given an increment.

See and review the individual's performance. If the performance is on a very high note, then give an increment. It will be good motivation for an employee to continue his/her job.

Regards,
Devarajan

No rule for the same.

Generally, manufacturing companies have a rule that if a person completes 6 months or more as of March 31, 2007 (you can consider December if you prefer), they will be eligible for an increment, which is paid with effect from the upcoming month of April (in this case, April 2007).

We used to pay a variable incentive based on the number of months the employee has worked in the previous year. However, you need to be careful with those who joined your company between the previous revision cutoff and the current cutoff date - in such cases, you need to pay for a minimum of 6 months or a maximum of 18 months.

P.S. - Isn't an increment prospective and not retrospective?