How Do You Fairly Calculate Salary Increases During Appraisals? Let's Discuss

Appraisal, like the setting of goals, is the work of the immediate superior. The HR department comes into play to oversee the process and ensure its fairness. A crucial aspect is determining the final step of the appraisal process, such as addressing any performance issues or discrepancies. Evaluating the salary increment involves calculating it as a percentage increase based on various factors. The formula used for this calculation typically considers performance ratings, market standards, and budget constraints. It is essential to understand this process thoroughly for effective salary management. Thank you in advance for your attention to this matter.

Understanding Salary Appraisal and Increment Calculation

Please share the most wanted information. How is salary appraised in terms of percentage? How is the increment calculated, and what formula is used for it?

Steps to Calculate Salary Increment

Please provide detailed steps for the final part. Thanks in advance.

Regards.

Appraisal Methods

Appraisal is done in various ways. It depends on how you want to appraise the employee.

Non-Executive Level:

Basic Salary is always a 30% hike of CTC offered. Appraisal depends on the percentage you want to offer to an employee based on the last year's performance. Normally, the industry standard hike is 20-30% on the CTC. It depends on how your company is appraising the employees. Most companies conduct a 180-degree appraisal, where the reporting manager and the HR of the company sit together with the employee.

The scale is as follows:
- 1 - Poor (5% hike or no increment)
- 2 - Fair (5-10% hike)
- 3 - Satisfied (10-15% hike)
- 4 - Good (15-30% hike)
- 5 - Excellent (30% or more)

Please let me know if this information is helpful.

Regards,
Priyanka Agarwal