My organization is having driver's who joined the organization at the beginning of business, as per yearly increment their salary is approx 40k in hand now a days, now management don't want to increase their salary any more, is there any law in India accourding to which we have to give yearly increment to them or we can cap there salary now.
From India, Indore
Other than complying minimum wages norms there is no law minimum increment per annum.
From India, Pune
Thanks Prashant for the feedback
From India, Indore
Increment is generally given as a motivational factor and to meet general cost of living, other than Dearness Allowance. If a person performs well, then increment, appreciation amount, promotion etc are given so that people get motivated to work well. If there is no salary increase by these means, people may leave the organisation and look for jobs elsewhere, where they get such recognition. It is for the organisation to decide whether they wish to retain their employees or allow them to leave. Over a period of time, word will spread in the market that your employer is not sought after by new candidates because of poor human resource policies.
From India
Dear Premlata ji,
There is no such Hard and fast Rule of annual increment. But you have to follow the minimum wages of the state. Very well said by Mr. N.K. Sundram that increment is a motivational factor and if there is a motivational factor available in any industry employee will stay there and all those employee who are with the organisation since inception of the company they are asset for the company. In your case if driver is getting salary of Rs 40 K in hand in that case you have to work on theory of " Why an employee should continue in company". In this method you can do the Why Why analisys. After that you can use his skills in other departments also.

From India, Alwar
Dear Premlatha,
Increment in salary is the discretion of management. It all depends on the interest of the organisation to retain the employee or not. A company provide increment only if they feel that the employee is an asset for the company and is a contributor or he might be a whistle blower to the management. There are no rules to demand an increment as per the Indian law so far. The only thing you can do is to bring this matter to the attention of management through a proper channel via union leader or through your immediate supervisor

From India, Kottayam
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