Dear Team, Kindly confirm for me that is it mandatory to mention the next increment cycle in the increment letter or not?
This is a HR policy matter and should be uniform across the organisation. You need to specify the increment cycle. Usually for small and medium size organisations it accrues once a year, usually 1st January, 1st April or 1st July and large organisations keep two or more standard dates. The first increment is drawn on confirmation of service after probation is cleared and in the subsequent years the increment date can be shifted to the next standard date for the purpose by making some adjustment.
let us say the standard increment date is April 1 and an employee has joined on 1st January 2020 and after the end of one year probation draws the increment on 1st January 2021 and his next increment will be drawn on April 1 2022 and thereafter on every 1st April unless it is withdrawn by a specific order. But had he joined on any day prior to 1st Sept 2019 he would get the benefit of 2nd increment from 1st April 2021.
From India, Mumbai
1534let us say the standard increment date is April 1 and an employee has joined on 1st January 2020 and after the end of one year probation draws the increment on 1st January 2021 and his next increment will be drawn on April 1 2022 and thereafter on every 1st April unless it is withdrawn by a specific order. But had he joined on any day prior to 1st Sept 2019 he would get the benefit of 2nd increment from 1st April 2021.
From India, Mumbai
Dear Colleague,
You need to check for the Compensation and Benefits Policy/ Settlements / Employment rules/ Terms of appointment/ HR Policy manual of your company or such other legal documents to decide on this. If all these documents are silent, there is no Law regulating increments in the country other than Awards and Settlements which are applicable for workmen covered under Industrial Disputes Act 1947. For other employees, the increments are at the discretion based on the financial viability of your company. Hence is it not mandatory to mention next increment cycle legally in the absence of specific mention in the above said documents and no legal requirement is there. However as a best practice and a good employer, you should keep your employees informed clearly about the increment cycle in a documented form so that there is no ambiguity between employees and management. This will bring clarity in practices and systems in the organization including audits if any.
From India, Chennai
You need to check for the Compensation and Benefits Policy/ Settlements / Employment rules/ Terms of appointment/ HR Policy manual of your company or such other legal documents to decide on this. If all these documents are silent, there is no Law regulating increments in the country other than Awards and Settlements which are applicable for workmen covered under Industrial Disputes Act 1947. For other employees, the increments are at the discretion based on the financial viability of your company. Hence is it not mandatory to mention next increment cycle legally in the absence of specific mention in the above said documents and no legal requirement is there. However as a best practice and a good employer, you should keep your employees informed clearly about the increment cycle in a documented form so that there is no ambiguity between employees and management. This will bring clarity in practices and systems in the organization including audits if any.
From India, Chennai
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