Need Help Calculating 2-Year Salary Arrears with 8% Increment – Can You Clarify?

Please let me know the appraisal calculation of an employee, which is due from 1st Sep. 2011 to 1st Sep. 2013 (as per half-yearly appraisal policy or 6-month PMS policy). His current salary is Rs. 19,686 per month, and the company has been paying him the same amount till date. What should be the total arrears for 2 years, as per a 6-month appraisal with an 8% increment on the current salary? I have already calculated it, but he does not agree with that. Please provide me with a complete and clear calculation of the total gap (considering an 8% appraisal) on his current salary or the arrears amount for 2 years.

Your response will be greatly appreciated.

Thanks,

Regards

He has calculated the increment from day one. You can brief him that the eligibility starts after 6 months from the date of joining, and you can show the breakdown/working to provide a better understanding.

Thank you.

This is not his first appraisal; he is an old employee of our organization. Due to some reasons, his appraisal was on hold for two years (that is a different matter). Now he has submitted the papers; his last appraisal was held in August 2011 (salary raised to Rs. 19,868 per month). From September onwards, I need to calculate his total dues. The company is still paying him Rs. 19,868/- per month (as per the last appraisal in August 2011).

Appraisal Periods and Calculation

So from September 2011 to February 2012,
March 2012 to August 2012,
September 2012 to February 2013,
March 2013 to August 2013 (8% on the current salary).

I am requesting you to please share the total pay calculation from September 2011 to August 2013. Your response will be greatly appreciated.

Regards,
Dimple

I have calculated the same, but the employee does not agree with this. From Sep 11 to Feb 12, the calculation is correct. However, from Mar 12 to Aug 12, the company should pay him Rs. 21,261, but he was receiving Rs. 19,686. For example:
- Mar 12 - 21,261
- Apr 12 - 21,261
- May 12 - 21,261
- Jun 12 - 21,261
- Jul 12 - 21,261
- Aug 12 - 21,261.

The company should pay him (21,261 - 19,686) = Rs. 1,575 with an increased salary plus an 8% appraisal amount. Kindly suggest a course of action because he is requesting an increased salary amount and arrears. He is causing confusion and complicating matters. I recently joined here, so the system is new to me. I kindly request your support on this matter. I appreciate your prompt response.

Regards,
Dimple

Now I understand your point. What we have worked out is incorrect. Please review the attachment, as it will provide a clearer idea and help resolve any doubts from both ends.

Regards