Hi, we must not confuse Salary Appraisal with Performance Appraisal; both are distinct.
Let's Be Clear:
Appraisal: It's an assessment or estimation of the worth, value, or quality of a person or thing.
Performance Appraisal: It is an assessment of your performance by an expert either within or outside of your organization. It can be monthly, quarterly, half-yearly, or yearly. It's basically a report card generated by your reporting boss or the appointed head. It will have a grading or numbering system that will evaluate your tenure in the organization.
Salary Appraisal: This may be directly or indirectly linked to increments in your CTC. It is totally based on your performance appraisal and regulates your presence in the organization. It's done post-performance appraisal in big organizations as per policy but may vary in small organizations. Salary appraisals are mostly calculated by the value you have added to a department, whether you are in functional support or actively on the front end.
Hope this clears up your confusion between both.
Thanks and regards,
Kapil Kathuria