Salary Increment Confusion: Does It Affect Basic Pay or Allowances?

Please, someone reply if an employee takes an increment (yearly increment as per company policy), will the amount be added to their basic salary or to their allowances. Awaiting your swift response. Thank you.

The increment amount can be distributed both in Basic and Allowances as per the norms.

Regards,
Byomjeet

Hi,

It depends on the company policy to distribute the amount in different heads. If we still don't have any policy, we can go through the past records.

Thanks,
Rahul Sethi

Hi,

An increment would lead to modification of the Basic & other allowances, which are components of the salary structure as per the company norms.

Regards, Aparna HR Professional

Dear Sender,

Any annual increment will increase the basic salary and may also lead to an increase in other allowances. This will vary from organization to organization.

Regards, L. Kumar

Dear Zahra Akhtari,

You can distribute the annual increment among Basic, DA, HRA, and other allowances if any. You can add approximately 25% of the increment to Basic, and the remaining 75% may be distributed among DA, HRA, and other allowances. If you provide me with your company's salary structure, I will be able to suggest the distribution ratio.

Regards,

MSP Bash
Email: bashamsp@rediffmail.com

Hi,

Normally, the word "increment" relates to basic salary adjustments. If there is an increase in other allowances, we refer to that as a revision. When discussing increments, they are typically added to the basic salary.

Siva

Dear Assalam Alaikum,

Any annual increment will increase the basic salary and may also lead to an increase in other allowances. This will vary from organization to organization.

Regards,
Saquib

Hi everyone,

Can anyone help me with the standard rules for increments? What percentage should be given, and do we have any standard rules for bonuses? Also, if a new employee joins our company, what is the maximum percentage of a salary hike we can offer them?