Is My Salary Hike Letter Valid If It's Based on Last Year's Appraisal?

I have been given a salary hike effective from April 1st, 2013, subject to the appraisal conducted for the calendar year 2012, right? The hike letter:

Dear XXX,

We are pleased to inform you that the management has made the decision to revise your salary in recognition of your performance, effective from April 1st, 2013, subject to the appraisal conducted for the calendar year 2012.

Regards,

What is the appraisal cycle? Is it Calendar Year or Financial Year? If it is the calendar year, then the appraisal and salary hike may be effective from January 1, 2013. With the above sentence, you can mention the employee's existing Cadre/Pay scale and revised Cadre/Pay scale.

In the future, it will not be revised automatically and will be based only on employees' future performance. The revised pay scale will be given for a one-year period only. The PF/ESI and other superannuation benefits will apply only to Basic and DA, not on other allowances.

Regards

Well, it depends on the company's appraisal policy. Some companies conduct appraisals on a calendar year basis, some on a financial year basis, and some on a tenure basis (when an employee completes a year or six months with the company).

In the above scenario, it appears that the company conducts appraisals on a financial year basis. However, the appraisal letter should also include details about payroll/payscale information, the previous salary amount, the increment amount, and the revised salary amount.

Congratulations on the pay raise! I know you deserved it. Find out what your company's appraisal guidelines are; there should be some basis or rules for the purpose. Every company has different guidelines, and employees should know them, while employers should clearly state the rules.

Regards,
NBAton

TNSPI, Philippines