Salary Increases: Should They Depend on Company Profits and How Much is Fair?

Can anyone guide me on salary increments? We need to raise the salary of our employees. Is it necessary that the increment should be based on the company's profit? If yes, then what percentage should it be? If no, then what percentage of increment should be given to all employees?

Thank you.

Hi Chandrashekhar,

Salary increment completely depends on the management. It can be divided into slabs according to the performance of the employee. Based on the profit of the company, the management can decide on the slab. The average increment rate in a good company varies from 8-20%.

Thanks,

Daisy Singh