I have a query about the increment policy of organizations. I am working in an organization (NGO) where inflation is not considered during increments. Increments are based solely on the performance that the person has shown during the past year.
Increment Policies in Organizations
I wanted to ask all HR professionals about what is practiced across the sector. Is inflation part of the increment, or is the increment given after accounting for inflation?
Kindly help me by sharing your views and experiences.
Thank you.
From India, Mumbai
Increment Policies in Organizations
I wanted to ask all HR professionals about what is practiced across the sector. Is inflation part of the increment, or is the increment given after accounting for inflation?
Kindly help me by sharing your views and experiences.
Thank you.
From India, Mumbai
The general practice followed is to consider inflation also while considering the annual increments, especially for people who are not covered by dearness allowance.
From India, Mumbai
From India, Mumbai
Thank you KSHASHIKUMAR NAIR.. Appreciate your inputs. Are their any legal obligations if the said system is not followed.
From India, Mumbai
From India, Mumbai
Hello Viaswajit,
I don't know about NGO increment practices. Industry practices of basic salary scales and numerous allowances constituting total CTC (Cost to Company) have an inbuilt shield for inflation. Progressive organizations do consider the inflation element in granting annual increments where there is no separate DA. Except under the Minimum Wages Act, there is no law requiring the employer to pay any allowance related to inflation.
From India, Mumbai
I don't know about NGO increment practices. Industry practices of basic salary scales and numerous allowances constituting total CTC (Cost to Company) have an inbuilt shield for inflation. Progressive organizations do consider the inflation element in granting annual increments where there is no separate DA. Except under the Minimum Wages Act, there is no law requiring the employer to pay any allowance related to inflation.
From India, Mumbai
It depends on the company and its standards no matter what the economy is into.
From India, Bengaluru
From India, Bengaluru
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