Planning of salary increments is generally based on the following factors in companies focused on retention of good people:
1. Compensating for increase in cost of living 2. Performance linked remuneration 3. Market based adjustments (for those who joined at low salaries, but are performing well) 4. Length of service in the company (ie, loyalty factor). For each employee, these four factors are listed out & the sum total of increase is calculated. This increase is then regulated keeping in view the overall budgets.
For some employees, especially the freshers/ trainees (awaiting confirmation), the increase in CTC may be 40 - 50%, while the Senior lot, who are already at par with the market, may be getting 10 - 12 %. Therefore, average increase in CTC of employees tends to be related more to the budgets of a company. If a company has performed well, the salary budgets will be proportionately higher and the employees are likely to get higher increments.
When someone gives a figure of 10 - 15 % average increment in the IT sector, it does not mean that you can blindly follow these norms. You have to work out details for your own company in a rational & scientific manner. 'EmpXtrack' is a tool that helps organizations in following an analytic approach.