Confused About Annual Increments: Can They Really Be Given in March? How Should I Handle This?

Recently, I have been interviewed by a manufacturing company. When I informed them that my increment is due in March 2014, the HR manager questioned me, "How are you getting an increment in March 2014?" Since my last increment was awarded in February 2013, and this year it falls in March 2014. He mentioned that, as per standard factory rules, increments are only granted in April. This made him view me with suspicion.

Question on Annual Increments

Please advise whether it is stated that annual increments can't be granted in March. In my understanding, if a person joins in February of the previous year, their annual increment will be due in March. The company is located in Jaipur, Rajasthan. How should I handle this situation? Please advise.

Thank you.

What the HR Manager says is correct. Generally, increments happen on the 1st of April. Therefore, there is nothing wrong if he takes your statement with a pinch of salt.

Proof of Increments

How many years have you worked in the current company? Do you have proof of increments for February 2013, February 2012, etc.? If yes, then scan the payslips and send the scanned copies by email. If you do not have scanned copies, what about bank statements? Obtain the bank statements for the last three financial years and show them to him.

All the best!

Regards,
Dinesh Divekar

Thanks a lot, sir. I had already given them my Feb 2013 increment letter along with the salary slip and the salary slip of March 2014 so that they can understand how it happens. I also gave them my bank account statement.

Regards,
Rajendra

I am just going through all views given by members, but, sorry to say, I feel there is some miscommunication or misinterpretation on the question. Performance appraisal is the company's internal policy; there is nothing in any law where the appraisal or period of appraisal of employee performance is mentioned.

The period of appraisal also depends on company culture, economic strength, etc. Some companies are conducting appraisals twice a year, while others do it on a yearly basis. Some companies have the appraisal period aligned with the calendar year, while others follow the financial year. In addition, some MNCs base their appraisal periods on the weather, depending on their headquarters' location, such as the US, China, or the UK. This approach is useful for them to work out global or national cost liability and effectiveness.

Thank you.

Timing of Annual Increments

Annual increments can occur at any time during the year according to the company's preferences. Some small companies provide increments at their discretion. Typically, appraisals and increments take place effective from April, corresponding to the fiscal year. However, some companies may opt for a calendar year approach. There is no fixed rule regarding the timing of increments.

Regards,
Pon

I agree with Tushar and Pon. There is no fixed time for an increment. Many companies have a yearly increment policy, while many have a twice-a-year policy. It varies from company to company.

Increment and Promotion Policies

Giving increments, promotions, etc., will be as per the policies and procedures of the organizations, which differ from organization to organization. There is no such rule that increments should be given in the month of April.

Reasons for April Increments

There may be reasons why he might have raised the issue:

1. The government revises Minimum Wages (DA revision) every year in April, paid in May. So, every company increases their employees' DA in April if they are paying less; otherwise, it’s not mandatory to give a hike in April.

2. Companies follow the accounting year from April to March. So, usually, they revise everything in April.

Nothing to worry about, just explain to him your company's practice. All the best!

Regards,
Madhu.M.S

Increment Policy Based on Organization Size

This aspect is also based on the size of the organization. In a company where I worked, increments are awarded to employees four times a year (i.e., 1st Jan, 1st April, 1st July, and 1st Oct). If an employee joins the organization between 1st Jan and 31st March, then their increment shall fall on 1st Jan the following year. Likewise, for an employee whose date of joining falls between 1st April and 30th June, their anniversary date for increment shall be 1st April.

There are no set rules for increments. They depend upon the performance appraisal policy/increment policy of the company.

Thanks,
R K Nair

Understanding Appraisals and Increments

There is no particular rule for companies regarding appraisals. Even an employee can get four appraisals in a year. This happened to one of my friends. So, it's clear that appraisals occur due to the performance of an employee. It doesn't mean the quantity of work; it's all about the quality of work that he or she has done.

Well, as I observe, there is no rule for increments. It depends upon the performance appraisal policy or increment policy of the company or organization.

Regards,
Kiramuddin