Employee Confirmation: Is It Necessary to Offer a Salary Increase and How Much?

Dear all,

In our company, it is not the practice to give an increment when confirming an employee. However, is it necessary to provide a confirmation increment at this time? If yes, then what is the maximum percentage that can be considered? Should we give a single-digit percentage increment based on performance?

Kindly provide guidance and suggestions on this matter.

Regards,
Shreya

Dear Shreya,

An increment is not bound by statutory law. It is completely at the discretion of management. The only thing you need to keep in mind is the minimum wages that you need to abide by.

Thank you.

Beyond accepting the point stated by Mr. Manoj that there is no hard and fast rule to hike a person's salary after probation confirmation, the only thing you have to keep in mind is that the employee is in good morale to continue in the organization. There can be chances of the employee leaving after the confirmation of services. Increment is given to the employee only to retain them and to meet the inflation in prices. Regarding your point of the percentage to be hiked, it depends on your budget, maybe 5%, 8%, or 10%.