The adjustment of the complete wage system, including several primary or key components, is known as salary revision. It varies from a pay raise in which a particular component of the whole pay scale is increased.
Basic pay, PF, as well as gratuity, are the major elements of the wage structure. Most employers additionally include a housing rent allowance or a special payment, medical coverage, as well as travel expenses. As a result, a ten percent wage increase would result in a ten percent rise in all categories. A ten percent salary rise, on the other hand, would imply a ten percent increase in any portion, which is usually the base pay.
This is usually linked to the individual annual review. The wage increment process is performed in accordance with the organization’s and individual’s achievements. Since most of the additional salary elements are linked to the basic income, it entails an increase in the individual’s basic salary. A boost in the basic salary will result in a pay raise, which will be noted on the payslip.
It may be necessary for the following situations: If the company’s salary structure differs from that of the market.
If it is decided that a salary adjustment will be made after the trial period is completed successfully.
The salary of an employee can be revised under certain circumstances. Some of the circumstances of salary revision are:
A salary revision refers to the change in whole salary structure, whereas salary increment refers to increase in the salary of employee during particular period.
There are numerous ways to justify a salary raise:
The average pay raise in the salary of an employee is generally 3%. A raise higher than that is considered to be exceptional and pretty good like 10-20% raise in pay. If you think you have immense contribution in your organization’s growth you can ask for more raise.
Get 20% off on
HR & Payroll Software