Salary Increases and Dearness Allowance: Are They Legal Requirements or Just Motivational?

Dear HR Professionals,

I have a couple of queries:

1) Is providing a salary increase a legal obligation or merely a motivational tool?

2) Is it mandatory to increase the Dearness Allowance (DA)?

3) What factors should be taken into account when considering a salary increase?

I look forward to your response.

Regards

1. Salary hike is not a statutory requirement but a motivational factor.

Dearness Allowance (DA) Increase

DA increase is a must for government employees or for categories covered under the minimum wage. This is my view.

Performance Measurement System

Performance Measurement System is a tool for a salary hike.

Regards

I agree with what was said. A salary hike is not mandatory, but it does motivate employees and helps create harmony between labor and employer. A DA hike is not mandatory in private companies; many companies nowadays don't give DA, provided they have other lucrative alternatives that help compensate for the rise in the standard of living, just like DA. An increment is a must for the Central and state governments. It happens twice a year.

Tools for Salary Hike

For a salary hike, the most prominent tool is the Performance Measurement System (PMS), etc. Wage Surveys, Wage Boards, etc., are also other tools.