Is It Fair to Adjust Salary Hikes Without Changing Basic Pay for All Employees?

Hi all, we are planning to hike the salary for employees. There is a difference in the basic salary for employees within the same CTC. So, we have decided not to raise the basic salary for some employees. Is this correct? Please help me with this.

Example:

Employee 1 (Gross Salary: 15,000)
Basic: 7,500

Employee 2
Basic: 5,000

Now, for these two employees, we have decided not to raise Employee 1's basic salary, but Employee 2 will get 7,500 as a basic salary to maintain uniformity. Is this the right approach?

Regards,
Sathish

Dear Sathish,

It depends to a certain extent on whether your firm is located in a metro or non-metro. In case the CTC is kept the same, then the basic may be decided as 40-50% of the net. This varies from company to company.

Moreover, often problems arise when the same is discussed among two employees.

Regards,

Mk

Salary Adjustment Guidelines for Metro and Non-Metro Areas

It is 40% of net for non-metro and 50% of net for metro, usually following a pattern. This means you can adjust it anywhere between 40% to 50%, and there is also a special allowance called to adjust the salary factor.

Regarding the nature of the industry you are in, could you please provide more details?

Regards,
MK

I am facing the same problem, but you can seek permission from your director for salary restructuring. Gather all employees in confidence and make this change. Remember, salary information is confidential and private, so do not disclose it.

Thank you.

At the end of the day, the employee will count only the net take-home. If that's well, then all is well.

Regards

Uniform Salary Structure and Increment Time

It seems you are not following a uniform salary structure, and you want to make it uniform. Increment time is the right time to correct problems in the structure, so go ahead and do it. Do a proper study and comparison, present your proposal to management, get it approved, and implement it. Try to ensure that the raise given in CTC is either uniform or linked to performance and justifiable across the grade so that there won't be complaints from employees. There is no thumb rule, as suggested by Mr. MK, about the percentage of basic against gross or net salary.

Salary Hike Planning

Hi all, now we are planning to hike the salary for employees. There is a difference in basic salary for employees within the same CTC. So, we have decided not to raise the basic salary for some employees. Is this correct? Please help me with this.

Example:

- Employee 1 (Gross Salary: 15000)
Basic: 7500
- Employee 2
Basic: 5000

Now, for these two employees, we have decided not to raise Employee 1's basic, but Employee 2 will get 7500 as basic salary to maintain uniformity. Is this the right way?

Regards,
Sathish

It is not necessary to increase the basic salary. You may add an SP allowance or other benefits.