Eligibility for Increment During Notice Period
Of course, a periodical increment in salary cannot be claimed by an employee as a matter of right in the absence of any explicit or implied term in the contract of employment or service regulations of the organization. At the same time, when the practice of increment is in vogue, it cannot be denied to an otherwise qualified employee just because he is in the process of voluntary exit sometime after the prospective date of sanction of an installment of his periodical increment.
The simple reason is that the increment is based on the performance in the previous year only, and the employee is to receive it only as long as he is in the service of the organization. Just because an employee is under the notice period, his responsibility to work does not get diluted, and therefore, he is entitled to all the due benefits of employment, including his increment during his notice period as well.