Salary revision refers to the process of reviewing and modifying the compensation and benefits package of employees within an organization. It typically involves adjusting employees’ salaries based on various factors such as performance, market trends, cost of living, internal equity, and organizational budget.
During a salary revision, organizations may consider individual performance evaluations, market research on industry compensation trends, the company’s financial performance, and budgetary constraints.
Based on these factors, an employee’s base salary, bonuses, incentives, allowances, or other forms of compensation may be adjusted. Salary revision can be done in the following circumstances:
Salary revision is a comprehensive review of all components of an employee’s salary, including base pay, allowances, and bonuses. It is typically done regularly, such as every year or every two years. This aims to ensure that an employee’s salary is competitive with the market rate for their position and experience.
Salary increment is a one-time increase in an employee’s salary. It is typically awarded based on performance or seniority. The amount of a salary increment can vary depending on the company’s policies and the employee’s performance.
A salary revision letter contains all the important components of an employee’s salary including base salary, allowances, PF and bonuses. It is revised every one or two years to ensure the salary of an employee is updated.
The best way to ask for a salary revision is to highlight all the wins you have achieved for the company. Ask the authorities concerned for a salary revision by mentioning the standard market salary for your role, your achievements with the company, and your growth within the company. This way you can ask for a salary revision/ increment while also focusing on what you have achieved for the company.
Salary revision is a regular process that involves reviewing all the components of an employee’s salary when it does not meet the market standards. But appraisal is based on the performance of an employee. For example, if an employee has performed well in the previous year, then they can get a good appraisal and get a salary increment.
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