Dear Team, Kindly confirm for me that is it mandatory to mention the next increment cycle in the increment letter or not?
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This is an HR policy matter and should be uniform across the organization. You need to specify the increment cycle. Usually, for small and medium-sized organizations, it accrues once a year, typically on the 1st of January, 1st of April, or 1st of July. Large organizations may have two or more standard dates. The first increment is received upon confirmation of service after probation is successfully completed. In the subsequent years, the increment date can be shifted to the next standard date by making necessary adjustments.
Let's consider a scenario where the standard increment date is April 1st, and an employee joins on the 1st of January 2020. After completing one year of probation, the employee receives the increment on the 1st of January 2021, and the next increment will be received on April 1st, 2022, and then annually on the 1st of April unless otherwise specified. However, if the employee had joined before the 1st of September 2019, they would be eligible for the second increment starting from the 1st of April 2021.
From India, Mumbai
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1655Let's consider a scenario where the standard increment date is April 1st, and an employee joins on the 1st of January 2020. After completing one year of probation, the employee receives the increment on the 1st of January 2021, and the next increment will be received on April 1st, 2022, and then annually on the 1st of April unless otherwise specified. However, if the employee had joined before the 1st of September 2019, they would be eligible for the second increment starting from the 1st of April 2021.
From India, Mumbai
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Dear Colleague,
You need to check for the Compensation and Benefits Policy, Settlements, Employment rules, Terms of appointment, and 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 the Industrial Disputes Act, 1947. For other employees, the increments are at the discretion based on the financial viability of your company. Hence, it is not mandatory to mention the 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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You need to check for the Compensation and Benefits Policy, Settlements, Employment rules, Terms of appointment, and 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 the Industrial Disputes Act, 1947. For other employees, the increments are at the discretion based on the financial viability of your company. Hence, it is not mandatory to mention the 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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