Dear HR Professionals, I have a couple of queries:

1) Is providing a salary increase a legal obligation or merely a motivational tool?

2) Is it mandatory to increase the Dearness Allowance (DA)?

3) What factors should be taken into account when considering a salary increase?

I look forward to your response.

From India, Bangalore
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1. Salary hike is not a statutory requirement but a motivational factor.

2. Dear Pon,

DA increase is a must for government employees or for categories covered under the minimum wage. This is my view.

3. Performance Measurement System is a tool for a salary hike.

From India, Lucknow
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I agree with what sir has said. Salary hike is not mandatory, but yes, it motivates employees, and it helps to create harmony between labor and employer. DA hike is not mandatory in private companies; many companies nowadays don't give DA, provided they have other lucrative alternatives, which would help them compensate for the rise in the standard of living, just like DA. Increment is a must for Central government and state government. It happens twice a year.

For salary hike, the most prominent tool is the Performance Measurement System or PMS, etc. Wage Surveys, Wage Boards, etc., are also other tools.

From India, Calcutta
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