Salary Increment Policy and Procedure



This policy outlines the guidelines and procedures for salary increments within our organization. It aims to ensure fair and consistent practices in determining salary increases based on performance, market competitiveness, and budgetary considerations.


To be eligible for a salary increase, an employee must be employed with the company for at least six months of continuous service and/or after the last date of increment.  An employee whose basic salary is at the maximum of the salary range may not be granted an increase that would cause the base salary to exceed the maximum of the range for that position.


  • The department head shall propose a salary increase. The employee shall not be informed about the proposal for his/her salary increase before the written approval on the personnel action form (PAF).
  • The following factors are the basis for awarding salary increases:
    • The employee’s level of performance (i.e. 10% as an outstanding performance, 7% as a good performance, and 5% as an average performance. The increase rate might be changed from time to time based on the discretion of the management)
    • The appropriate pay level within the range
    • Pay increase funds/budget available
    • New job responsibility
    • Internal equity and external equity (market labor rate)
    • Financial business performance
    • Government regulations i.e. minimum wage, customer price index (inflation), etc
  • When deemed necessary, the salary increase above the salary range/without the budget shall be considered for the purpose of employee retention only.


Personnel Action Form (PAF)


Please note that this policy and procedure is a general guideline and may need to be customized to fit the specific needs and regulations of your organization. It is recommended to consult with legal and human resources professionals when implementing or modifying such policies.


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