Payroll
Increment
An increment is a revision of salary, usually annual, expressed as a percentage of CTC or basic and effective from a stated date.
Increments follow the appraisal cycle and are recorded as a new salary revision with an effective date. If processed after the effective date, the difference is paid as arrears.
Increment letters state the new CTC and structure and are kept on the employee record.
In Indian payroll
Most companies revise in April or July. Payroll should hold the revision against the employee with its effective date rather than editing the current structure, so history and arrears stay correct.
What is Increment?
An increment is a revision of salary, usually annual, expressed as a percentage of CTC or basic and effective from a stated date.
Why does Increment matter in Indian payroll?
Most companies revise in April or July. Payroll should hold the revision against the employee with its effective date rather than editing the current structure, so history and arrears stay correct.
Related terms
In Kuzhu
The Performance Management module in Kuzhu is where Increment is handled, on the same employee record as everything else.
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