Non acceptance of increment - law or policy that binds employee to accept the amount?

Dear Rajan Love,
What is your total salary? Are you paid minimum wages or well above the minimum wages? What is your designation?
Is this meagre increase is given to all others or you are singled out? Why your hike is so low? What is your opinion?
As stated in my first post, employers resort to such tactics to humiliate unwanted employee. Unable to face brunt of humiliation, employee puts in his/her papers. Voluntary resignation suits employers.
Give more information about your query.
Thanks,
Dinesh Divekar

Dear Anonymous,
No law regulates grant of increment. That is based on individual's performance. On your refusal to accept your increment company does not lose anything, as your refusal has no relevance for the company. However, that vents your grievance about insufficient amount of increment. But, you have to see whether other employees have also been granted increments on the same pattern or only in your case. You have not discussed about the rating of your self appraisal by your bosses and your interaction with them on that. So, it is hard to say whether you are right or not in your refusal.
But still your refusal to accept the increment denotes demonstration of your dignity, company may or may not enhance the amount of increment. Keep that spirit but don't let your efficiency go down merely on account of the issue of increment. That may maintain your dignity in your company.

Rajan,
I think the writing is pretty clear.
The Comoany does not think you are worth retaining, or it thinks you are over paid today.
If you can find another job paying significantly better, proceed

Well, so many seniors already posted their comments about this matter. Actually same problem happened in our company and one of the engineer resigned because of this issue. He was not satisfied from the increment amount and he decided to leave rather to continue.
Increment is based on the annual performance of an employee, its entirely depend upon the appraisal report. You can't challenge that. All you can do is, you can better switch your job and better to find new opportunity.
With Regards,