Is Salary Increment a Right for Employees? Seeking Clarity on Indian Labor Laws

I know that the increment depends on the basis of last year's performance of the company and employee performance appraisal. Can anyone consult with me about whether an increment is the right of the employee or not? If yes, then where is it mentioned under Indian labor law (rule)?

There is no law mandating that management or the government must pay increments. Increments are typically given to enhance employee retention.

The objective of granting increments to employees periodically is manifold. Firstly, an increment distinguishes the seniors from the juniors in the same cadre, motivating the senior employees by recognizing their longer length of service. Secondly, the grant of an increment ensures a definite increase in the employees' earnings. Thirdly, as it serves as a monetary motivation for sincere and blemishless service, it ensures diligent discharge of duties and well-disciplined behavior among the employees.

Now, you would have understood that the grant of a periodical increment is an objective arrangement in wage and salary administration, subject to the fulfillment of certain standards. Therefore, there could be no legal compulsion for the employer to grant an increment, nor any employment right vested in the employee to make a claim in this regard except its denial on disciplinary grounds.

Regards

I would add to what was said by Sh. Umakanthan.M. An increment is granted to track the income of the employee with the Price Index of the Market. This aspect should be given prime consideration while granting increments.

Thanks,
V K Gupta