How Much Raise Should a Long-Term Driver Get? Seeking Advice for Salary Revision Proposal

Dear All,

How much increment should a company's driver, who has been working for the last 4 years on the same salary, be given in percentage? I also need to prepare a salary revision proposal for an ITES company. Kindly guide me on the same.

Regards,
TANVI

Dear Tanvi,

5 to 10% would be great on his basics. Also, if you do not have medical cover for him and his family, please include that as well. For salary revision, I suggest you go through the attachment, and I hope that is helpful.

UKmitra

Hi, thanks a lot UKmitra for such a quick response.

Also, if you can suggest the standard pay structure in ITES in terms of experience and qualifications (e.g., for web designers, system analysts, sales MBAs, BTech, etc.).

As this is a small organization where I have been working for the past 6 months, I now have to propose salary increments during the March appraisal.

Looking forward to your insights.

Regards,
Tanvi

Hi Tanvi,

The job that you are doing is termed "Compensation and Benefits Planning," which ideally is done with a lot of research and would not be available off the shelf. So, you will have to do a lot of groundwork and homework. The attachment that I shared gives just steps to start with. There is no standard pay structure for any company. All companies, based on their capacity, profitability, and ability to retain the best talents, fix their salaries.

I would work on compensation for staff based on:
1. Budget allocation.
2. Salary comparison by competitors.
3. Appraisals.

These are just a few steps, and I hope you get more feedback from other experts as well.

Regards,
ukmitra

Dear Mr. Tanvi,

You can adopt and implement the Minimum Wages Act for the drivers as per the State and District Administration rules. If their services are longer, you can categorize them as Grade A instead of Grade C and increase their basic wages by 5%. Similar to other employees covered by ESI, you can also include them in ESI. Additionally, they can be covered by Medical and Accident Insurance for themselves.

If the business firm is profitable and sizable, you can extend family mediclaim to the driver along with all employees. This step will benefit the family and contribute to a more employee-friendly organization.

Regards