Hi,
I want to know if it is mandatory to give annual increment letters to each employee when the company declares a general increment at the end of the year. I can understand if it is a small company, its easy to give letters to each one. I have 800+ employees in our company which includes Labour, skilled, technical, office, managerial etc level of people. What is the normal practice? Is it essential to give letters informing them about their increments or is it enough that they will come to know when they get their payslip for Jan. Views and comments will be highly appreciated. Thanks
From United Arab Emirates, Dubai
1I want to know if it is mandatory to give annual increment letters to each employee when the company declares a general increment at the end of the year. I can understand if it is a small company, its easy to give letters to each one. I have 800+ employees in our company which includes Labour, skilled, technical, office, managerial etc level of people. What is the normal practice? Is it essential to give letters informing them about their increments or is it enough that they will come to know when they get their payslip for Jan. Views and comments will be highly appreciated. Thanks
From United Arab Emirates, Dubai
Hello vinod, Yes it is essential to give increment letters in any case and with any number of employees. Regards, Khaiser Ali Shah
From Saudi Arabia, Riyadh
From Saudi Arabia, Riyadh
Dear Vinod :lol:
HAPPY NEW YEAR :)
Yes it's important to give annual increment letters to all the employees, as it will make them understand how much increment has been provided to each individual.
Any number of employees may be their, increment letter has to be issued.
With the change in the salary slip, some will land up confused, as why such a change. Therefore, one must release letters to avoid any kind of confusion & discrepency in the process.
Regards,
Bhavna :)
From India, Lucknow
HAPPY NEW YEAR :)
Yes it's important to give annual increment letters to all the employees, as it will make them understand how much increment has been provided to each individual.
Any number of employees may be their, increment letter has to be issued.
With the change in the salary slip, some will land up confused, as why such a change. Therefore, one must release letters to avoid any kind of confusion & discrepency in the process.
Regards,
Bhavna :)
From India, Lucknow
Hi your question is "Is it mandatory to issue increment letters?
You can consider following situations:
1. Covered by Scale of pay and this scale of pay in issued at the tim e of joining or at the time of revision.
Under this scenario, you do not need to issue a letter legally
2. Covered by a general circular which talks about all details
Again you dod not need to issue a letter if you get this Circular duly signed by all the employees
3. Covered by Settlements
Legally you do not need to issue letters if it is a 12(3) settlement If it is 18(1) settlemnt, you got to issue letters and get the duplicate copies signed.
4. If it is performance based increments
Then you need to issue letters
Siva
From India, Chennai
You can consider following situations:
1. Covered by Scale of pay and this scale of pay in issued at the tim e of joining or at the time of revision.
Under this scenario, you do not need to issue a letter legally
2. Covered by a general circular which talks about all details
Again you dod not need to issue a letter if you get this Circular duly signed by all the employees
3. Covered by Settlements
Legally you do not need to issue letters if it is a 12(3) settlement If it is 18(1) settlemnt, you got to issue letters and get the duplicate copies signed.
4. If it is performance based increments
Then you need to issue letters
Siva
From India, Chennai
Hi Vinod !
Mr. Siva has explained the subject very well.
Yes, issuing increment letter can be helping to employees in understanding their pay raise well but it is not mendatory to issue increment letters.
Administratively or logistically speaking issuing letters (800 nos.) is not easy. It depends how well equipped your HRIS is. If you have provisions for common draft letter in your software, than generating letters for 800 employees using details in master database is work of a few hours. (Not so sure about signing them :) And no comments about how to issue them:))
Mendatorily you are not required to issue letters. But increment letters do have a high motivating effect on employees. People will be charge up on receiving letters. An appreciation on paper has a great effect.
In my opinion, if you have good HRIS for generating letters, you should.
- Hiten
From India, New Delhi
Mr. Siva has explained the subject very well.
Yes, issuing increment letter can be helping to employees in understanding their pay raise well but it is not mendatory to issue increment letters.
Administratively or logistically speaking issuing letters (800 nos.) is not easy. It depends how well equipped your HRIS is. If you have provisions for common draft letter in your software, than generating letters for 800 employees using details in master database is work of a few hours. (Not so sure about signing them :) And no comments about how to issue them:))
Mendatorily you are not required to issue letters. But increment letters do have a high motivating effect on employees. People will be charge up on receiving letters. An appreciation on paper has a great effect.
In my opinion, if you have good HRIS for generating letters, you should.
- Hiten
From India, New Delhi
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