Salary Appraisals: What Percentage Increase Should You Expect in Your Organization?

Hello All,

Could someone tell me what the normal percentage hike an individual is entitled to within an organization during appraisals? Is it between 15-20% of their gross salary, or am I wrong?

Thanks,
Priscilla

It depends on company norms. Generally, in any appraisal, salary revision depends upon his/her contribution and value addition to the company. In our company, salary hike ranges from 5% to 50%.

Regards,
Sri

Hi,

It differs from company to company and depends on the employee's performance. Some companies may have a minimum/guaranteed hike of 10%, irrespective of the employee's performance. The maximum hike, as per the company's policy, can be as high as 30%. For very rare exceptional cases, it will be more than 50%, but this is very rare. The hike is usually given on CTC and not just gross. Again, this too can be different from company to company.

Regards,
Deepthi

Hi,

I would like to put my thought on the same. The hike is clearly based on company norms. This depends on two factors: 1. Performance 2. Market Correction. Now the percentage of hike is decided based on these two factors and normally it varies from 5% to 40%, with the average being 20% usually. People who are fairly new to the organization and eligible for a hike get a token hike, whereas critical resources and good performance receive the maximum hikes.

Hope this is helpful.

Cheers,
Mallet Easow

Hi Priscilla,

On an average basis, if we see, it is 30%. The rest depends upon the performance. Some companies even give a 100% hike as well.

Deepali

Hi All,

I agree with Mallet and my fellow HR colleagues that a salary hike is based on the organization's performance in addition to an individual's performance, on the surplus budget allocation depending upon sales forecast, and compensation trends in a particular industry. Hikes vary from company to company.

Thanks,
Debashis

Dear Priscilla,

Greetings.

It differs from company to company. Also, the hike in salary is based on the performance of the following criteria:

1. Financial wealth of the company, profit in the previous year, future plans, budgets.
2. Individual performance: Achieving targets, willingness to take responsibility, cost consciousness, meeting organizational goals. Discipline and behavior also play a role.
3. Group performance: You may be part of a team in a different department. For example, salespeople have different plans for hikes based on their weekly/monthly/yearly performances.

Hence, it may vary from 5% to 40% in terms of money. But position hikes like promotions and rationalization of grades vary from company to company.

Cheers,

With regards,
Trisha
HR Professional