increment policy

1. Introduction
• The overall policy will remain the same, with only
some minor changes
• Better increments based on company overall
progress to encourage people to perform better
• All performance grade of employees and the eligible
ratings & their increment slabs will remain the same
• The changed policy will be applicable with effect from
Jan’09 annual Increments
• The assessment of all employees will remain the
same with no changes

2. Increment Policy 2008-09
Revised Policy with effect from January’09
Increment Policy
Company
Performance
Industrial
salary
Standards
Orders
Undertaken by
Company
Recession
&
Inflations
Employee
Grades

3. Standard Increment based on:
• Company achieving targeted turn over and
profit margin
• Higher increments for exceeding
turnover/profits targets on decided by the
board
• Correction for under performance of the
organization on the whole

4. Annual Increment is based on the
following parameters:
• Based on Individual Grades
• Company financial performance during the
financial year
• Order Book Position during financial year
• Last year’s Industry annual increment trends
• Recession of Economy

5. Increment slabs remain the same
Performance
grade of
employee
Up to INR
25000 per
month
Between
INR 25001
to 50000
per month
Above INR
50000 per
month
Grade A+ 50% 35% 25%
Grade A 40% 25% 20%
Grade B+ 25% 17.5% 12.5%
Grade B 20% 12.5% 5%
Grade C+ 5% 5% Nil
Grade C Nil Nil Nil

6. Actual Meaning of the Grades
Grade A+ 95 - 100 pts (Outstanding) Performance far exceeds expectation resulting in cost and time
saving instances, also in having significantly contributed in new
products or execution of projects and creation of patentable IPs /
marketable products that are quantifiable and demonstrable in
the presence of a Committee
Grade A 90 – 94 pts (Excellent) Performance is above expectation resulting in cost and time
saving instances and also in having significantly contributed in
new products or execution of projects that are quantifiable and
demonstrable in the presence of a committee
Grade B+ 85 - 89 pts (Good) Performance in line with expectation and demonstrable in the
presence of a committee, if called for
Grade B 80 – 84 pts (Satisfactory) Performance is satisfactory but needs improvement
Grade C+ 75 - 79 pts (Average) Performance below expectation, must improve
Grade C 70 – 74 pts (Below
average)
Performance below expectation, needs lot of improvement
Grade D < 70 points (Poor) Not suitable for the current task

7. Increment Process
120% of Eligible
Increment
100% Increment as per the
Actual Grade Ratings
80% of Eligible
Increment
You may be here!
Or here!

8. Increment process with Eg.
• Eg:1. Company exceeding turnover/profit margin
targets, Board decides on 20% additional increments.
i.e. Increments = 120% on eligible increment
• Eg:2. Company achieves expected targets,
• No additional Increment declared by Board.
i.e. Increments = 100% on eligible increment
• Eg:3. Company fails to achieve expected targets,
Board recommends 20% reduction Increment
i.e. Increments = 80% on eligible increment

9. Thank You
• For any queries & suggestions please feel free
to contact at e-mail:
Jagdishraoc@gmail.com