Understanding Annual Salary Hikes: Can We Split Increases into Bonuses?

Hi team, I am working in a small private company, and we are planning to implement HR functions. I need your help in understanding the payment structure and if there is any defined hike percentage that should be given to employees per year. I would like to know the minimum hike percentage that should be given to any employee annually.

Hike Percentage Breakdown

Is it possible to break the hike percentage into two and show it as a bonus after 6 months? For example, if the company plans to give a 20% hike per annum, can we give a 10% hike after 6 months and show the remaining 10% as a bonus?

Thank you,

Malini

Malini, No standard is available for salary hikes. The proposed hike and the method of implementation are in accordance with company policies. If the hike is included in the salary rather than as a bonus, employees benefit as it will increase their PF contribution (both ways) and retirement benefits.

Regards,
Pon