Confused About Implementing a 5% Salary Increase: Should It Be Added to Basic Pay?

Management has instructed me to increase employees' salaries by 5%. I would like to understand if this 5% increment should be added to the basic salary. I am quite confused about this matter.

Methods for Implementing Salary Increment

Could you please provide a detailed explanation of the different methods we can use for this increment? Additionally, I am interested in knowing which approach would be most beneficial for the employees.

Your guidance on this matter would be greatly appreciated. Thank you.

Regards

You just need to ask your management whether it will increase the basic salary or the CTC. Generally, industries increase the salary based on the CTC of their employees.