Dear Seniors,
I am working for a state PSU manufacturing unit. In our organization, there is a fixed 3% increment every year for all employees. Now, my question is if an employee's attendance is less than 240 days in a year, are they still eligible for the annual 3% increment? Please provide your kind suggestions and specify the exact calculation for such an annual increment.
Regards, Masterguna.
Also, mail to gunamoni33@gmail.com
From India, Delhi
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1I am working for a state PSU manufacturing unit. In our organization, there is a fixed 3% increment every year for all employees. Now, my question is if an employee's attendance is less than 240 days in a year, are they still eligible for the annual 3% increment? Please provide your kind suggestions and specify the exact calculation for such an annual increment.
Regards, Masterguna.
Also, mail to gunamoni33@gmail.com
From India, Delhi
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Dear Sir(s),
You have not mentioned whether the PSU in which you are working is a Central Govt. Unit or State Govt. Undertaking. The award of annual increment is based on the service rules/regulations adopted by the PSUs. If you or any employee of your organization has been denied a yearly increment, then you or the employee can ask the management about the rules/regulations on the basis of which the annual increment has been denied.
With regards,
Harsh Kumar Mehta
From India, Noida
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You have not mentioned whether the PSU in which you are working is a Central Govt. Unit or State Govt. Undertaking. The award of annual increment is based on the service rules/regulations adopted by the PSUs. If you or any employee of your organization has been denied a yearly increment, then you or the employee can ask the management about the rules/regulations on the basis of which the annual increment has been denied.
With regards,
Harsh Kumar Mehta
From India, Noida
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PS. You have mentioned "state" PSU in your remarks. Please see which of the service rules are applicable to employees of your PSU. You can also ascertain the causes of non-sanction of yearly increments through RTI.
Harsh Kumar Mehta
From India, Noida
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Harsh Kumar Mehta
From India, Noida
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In pvt organisations, the increment is on prorata deducting the LOP period subject to the performance of individual. Pon
From India, Lucknow
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From India, Lucknow
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Dear M. Guna,
Yearly increment is a type of award given to an employee for their dedication towards work, work performance, and for encouraging other employees. However, the employer cannot be forced to give an increment. It may be provided based on work performance, company rules, government notification, if required, or as per the terms of the Appointment Letter.
You mentioned that you work for a state PSU manufacturing unit, and you also noted that "In our organization, there is a fixed 3% annual increment for all," which suggests that you may be deployed there through a contract agency, if my understanding is correct.
In this scenario, there may be specific Rules & Regulations or Terms and Conditions for the yearly increment of employees as per the contract agreement with the State Government. Therefore, I recommend inquiring with your management about the criteria for the Yearly Increment.
Thank you.
From India, Delhi
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Yearly increment is a type of award given to an employee for their dedication towards work, work performance, and for encouraging other employees. However, the employer cannot be forced to give an increment. It may be provided based on work performance, company rules, government notification, if required, or as per the terms of the Appointment Letter.
You mentioned that you work for a state PSU manufacturing unit, and you also noted that "In our organization, there is a fixed 3% annual increment for all," which suggests that you may be deployed there through a contract agency, if my understanding is correct.
In this scenario, there may be specific Rules & Regulations or Terms and Conditions for the yearly increment of employees as per the contract agreement with the State Government. Therefore, I recommend inquiring with your management about the criteria for the Yearly Increment.
Thank you.
From India, Delhi
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Hello,
PSU service rules are an unknown territory to me.
Based on Private Sector practices, applicable law, and at a conceptual level, I wish to state the following:
1) The magic figure of 240 days is relevant only regarding determining eligibility for Earned Leave in the manufacturing sector (where the Factories Act is applicable) and concerning the Industrial Employment (Standing Orders) Act 1946 where Clause 4-C of the Model Standing Orders makes it mandatory for the employer to confirm any temporary employee who completes 240 days in a period of the previous twelve months.
2) At a conceptual level, there is a very weak connection between the "attendance" level of increment. In fact, there is often seen a negative correlation, but the idea of anyone with "good" attendance receiving a good increment is really unheard of!
3) Increment and 240 days of attendance are NOT issues with any law. It is the Management's policy on the subject that should decide the issue!
Trust there is enough clarity on the query.
Regards,
Samvedan
November 9, 2013
From India, Pune
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PSU service rules are an unknown territory to me.
Based on Private Sector practices, applicable law, and at a conceptual level, I wish to state the following:
1) The magic figure of 240 days is relevant only regarding determining eligibility for Earned Leave in the manufacturing sector (where the Factories Act is applicable) and concerning the Industrial Employment (Standing Orders) Act 1946 where Clause 4-C of the Model Standing Orders makes it mandatory for the employer to confirm any temporary employee who completes 240 days in a period of the previous twelve months.
2) At a conceptual level, there is a very weak connection between the "attendance" level of increment. In fact, there is often seen a negative correlation, but the idea of anyone with "good" attendance receiving a good increment is really unheard of!
3) Increment and 240 days of attendance are NOT issues with any law. It is the Management's policy on the subject that should decide the issue!
Trust there is enough clarity on the query.
Regards,
Samvedan
November 9, 2013
From India, Pune
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Dear Guna,
The increment is based on the performance of the employee and the company's profit. As said by Mr. Samvedan, the 240 days count is meant for earned leave calculation, gratuity calculation, and serving of notice period, and not for calculating increment. The increment can be calculated on a pro-rata basis based on the company's PMS Policy.
From India, Kumbakonam
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The increment is based on the performance of the employee and the company's profit. As said by Mr. Samvedan, the 240 days count is meant for earned leave calculation, gratuity calculation, and serving of notice period, and not for calculating increment. The increment can be calculated on a pro-rata basis based on the company's PMS Policy.
From India, Kumbakonam
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It is very difficult for members to respond to your query in the absence of actionable information. I can only say in general terms that in PSUs, normally granting an annual increment is automatic unless the employee exhausts their leave and remains on loss of pay. Thus, in PSUs, the possibilities of withholding or postponing an annual increment may arise in the following cases:
1) when the absence is on loss of pay, in which case the increment gets postponed to the extent of loss of pay, or
2) where an increment is withheld by way of punishment, or
3) where the granting of the increment is linked to an efficiency bar/performance as laid down under the rules.
B.Saikumar
From India, Mumbai
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1) when the absence is on loss of pay, in which case the increment gets postponed to the extent of loss of pay, or
2) where an increment is withheld by way of punishment, or
3) where the granting of the increment is linked to an efficiency bar/performance as laid down under the rules.
B.Saikumar
From India, Mumbai
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Normally, there is no such restriction on attendance to receive an annual increment. However, this policy is established when determining the increment pattern or wage scales. In this regard, I fully agree with Mr. B. Saikumar. Instead of seeking an answer externally, you should first investigate within your organization how and when the system of annual increments was implemented, and if there are any qualifying clauses.
From India, Kolhapur
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From India, Kolhapur
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As I endorse the reply of Mr. Sai Kumar, I may add what has been said by him as follows:
While the increment in PSUs is time-bound, automatic grant except when withheld by a specific order as a punishment arising out of a disciplinary inquiry as a result of charges framed like unauthorized absence (habitual absenteeism), other offenses warranting inquiry, etc. Even in LOPs when these kinds of extraordinary leave granted or authorized leave (for higher studies, confinement, sickness) still the increment could be granted if the concerned authority satisfies the genuineness of the ground of leave.
However, if and when the Probation period is not completed successfully and extended, the increment could be postponed irrespective of the time-bound rules.
In many cases when increments are withheld as a punishment, the authorities revoke later, on some grounds like subsequent good performance or such other considerations, including the interference of Union influence.
But in the private sector, in many cases, it is not automatic but based on performance, etc.
From India, Bangalore
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While the increment in PSUs is time-bound, automatic grant except when withheld by a specific order as a punishment arising out of a disciplinary inquiry as a result of charges framed like unauthorized absence (habitual absenteeism), other offenses warranting inquiry, etc. Even in LOPs when these kinds of extraordinary leave granted or authorized leave (for higher studies, confinement, sickness) still the increment could be granted if the concerned authority satisfies the genuineness of the ground of leave.
However, if and when the Probation period is not completed successfully and extended, the increment could be postponed irrespective of the time-bound rules.
In many cases when increments are withheld as a punishment, the authorities revoke later, on some grounds like subsequent good performance or such other considerations, including the interference of Union influence.
But in the private sector, in many cases, it is not automatic but based on performance, etc.
From India, Bangalore
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Dear Sir,
Thank you very much. Yes, I have gone through the agreement and found that it was fully mutual between management and the Workers Union. Now we can proceed according to the new understanding between both parties. Thank you once again for your kind help.
Regards.
From India, Delhi
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Thank you very much. Yes, I have gone through the agreement and found that it was fully mutual between management and the Workers Union. Now we can proceed according to the new understanding between both parties. Thank you once again for your kind help.
Regards.
From India, Delhi
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Dear MasterGuna,
Regarding your question about who should check the rules applicable in your state, I am working with the MP government, and here, there is no such clause for an increment unless it is withheld due to any punishment.
From India, Ratlam
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Regarding your question about who should check the rules applicable in your state, I am working with the MP government, and here, there is no such clause for an increment unless it is withheld due to any punishment.
From India, Ratlam
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Dear MG,
I also work in a Central PSU. In our industry, there is a provision that if an employee is absent or avails Leave Without Pay for a period not less than 26 days, their annual increment should be deferred by one month (wages being paid for working days only and not for Sundays). Though it is not religiously followed due to the lack of reconciliation of LWP days.
From India, New+Delhi
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I also work in a Central PSU. In our industry, there is a provision that if an employee is absent or avails Leave Without Pay for a period not less than 26 days, their annual increment should be deferred by one month (wages being paid for working days only and not for Sundays). Though it is not religiously followed due to the lack of reconciliation of LWP days.
From India, New+Delhi
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Attendance has no concern with the annual increment. It is required for permanent status. @40 days includes all Sundays, holidays, earned leave from the previous year availed in the current year, any interruptions on account of sickness or an accident, a strike that is not illegal, or a lock-out due to the cessation of work that is not due to any fault on the part of the workman (See section 25-B ID Act/Se.2-A of POG Act 1972).
RL Dhingra, Advocate, Labour Law Consultant Delhi - 09818309937 email: rld_498@rediffmail.com
From India, Delhi
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RL Dhingra, Advocate, Labour Law Consultant Delhi - 09818309937 email: rld_498@rediffmail.com
From India, Delhi
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Hello,
Increments linked to attendance would generate unhappy employees. Instead, increments should only be linked with performance, contribution to the organization, and actual achievement of targets, be it in any sector, public or private. Only then will it lead to healthy competition, quality resources, and a growing economy.
Regards,
Pooja
Meara Human Consulting
From India, Gurgaon
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Increments linked to attendance would generate unhappy employees. Instead, increments should only be linked with performance, contribution to the organization, and actual achievement of targets, be it in any sector, public or private. Only then will it lead to healthy competition, quality resources, and a growing economy.
Regards,
Pooja
Meara Human Consulting
From India, Gurgaon
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I have a different view. Habitual absenteeism acts like a slow poison eating into the vitals of an organization, adversely affecting smooth operations, customer service, productivity, production, and ultimately profits. Therefore, attendance deserves to be considered as one of the key factors in decisions regarding granting increments during appraisals. It will help curb the habit to some extent, but more importantly, it motivates those who regularly attend to their duties since their dedication has been recognized.
B. Saikumar
From India, Mumbai
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B. Saikumar
From India, Mumbai
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Employee Attendance Register - 2014-15.xls
Employee Monthly Attendance.zip