Yearly increment
Is it common HR practice to have percentage-based yearly increments? This is how it is done in my company, and it seems to me to be an unfair system that favours those earning more. An example. Suppose X (with experience) and Y (fresh graduate) join a company, with salary of 6k and 3k respectively. And assume that both are consistently rated A over the next few years, and that the increment for A performers is 10%. Over time, the salary gap between X and Y is going to widen. 3 years later, for example, X's salary will rise to $8k while Y's salary will only rise to 4k.
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Unless, like me, you have never received job offers with higher pay, only pay cuts.
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small percentage.
Hi,
The reality: Both experienced and fresh MAY receive barely 2% annual increment. Thus, the absolute value are almost negligible. Based on your example of $6K vs $3K, the increments are $120 vs $60. If there are firms that pay in the range of 10% increment, please let us know. |
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Singapore President's annual salary tops S$4.2 million - Yahoo! News |
my friend:
grad in 2005, engineer in EPC company serving oil,chemical, pharma industries. 2006: $2500, $2700 (confirmed 6 mths later) 2007: $3000 2008: $3300 2009: $3300 (recession no increment) 2010: $4000 (double-increment to compensate 2009 freeze) 2011: $4700 (promotion) as shown, yearly increment abt $300-$350, which is around 10%. promotion increment $700 |
For those who are getting 10% it is quite good. According to the Annual Wage Review, it is typically 4~6%.
My company gives me a measly 4% increment per year which is crap because if you were to take inflation into consideration which is about 2~3% per year (with exception of 2009 which was 7%!!) I am basically getting a 1% increment per year and -3% increment for year 2009. Increment should be on top of inflation to give a true figure. |
normally annual increment is 2-6%,
for my example below i will assume annual increment (AI) be 5% --------------------------------------------- different company pay AI differently, some pay AI in term of % as you have mention, while some pay AI by giving fix quantum increment throughout the board. (my example will exclude promotional increment) ---------------------------------------------------------------------------------- AI base on % MR A basic = $3000 AI = 5% After 10 years with the same company = $3000 x (1.05)^10 = $4886 MR B basic = $4000 AI = 5% After 10 years with the same company = $4000 x (1.05)^10 = $6515 when AI is payout in %, the higher the basic salary will be better, as it will generate higher AI on a higher base. --------------------------------------------------------------------------------------- AI base on fix quantum increment MR A basic = $3000 AI = fix $150 every year After 10 years with the same company = $3000 + 10(150) = $4500 MR B basic = $4000 AI = fix $150 every year After 10 years with the same company = $4000 x 10(150) = $5500 when AI is payout in fix quantum, every one get the same increment. ---------------------------------------------------------------------------------- In the long term, annual increment in % will be better, as the base salary getting higher, the annual increment will be larger!!1 |
My increment is actually quite fast, and furious, and real. i work in a bank (yes real bank with a real job, and real pay)
All figures in SGD or SGD eq on annual basis 2004: grad with local undergrad+master and started at base of 40.6k and pro-rated half-year bonus of 8k 2005: was promoted and base up 11.7% to 45.6k and full year bonud at 18k 2006: base unchange and no bonus cos i left in May 2006-2007: student again 2007: work for a new firm in nyc. sign on bonus 50k usd, base 95k usd, half year stub year 25k usd 2008: base unchanged at 95k usd, no bonus cos i left in June 2008: back in SG working for another bank, base 110.4k, half year stuf bonus 40k 2009: promoted at mid year, base up 20% to 132.5k, full year bonus 92k; sideline business 15k 2010: promoted again end of 2009 but base unchanged, full year bonus 100k; sideline business 22k 2011: base up 10% to 145k, full year bonus expected 120k; sideline business expected 40k So my base is up from 40.8k to 145k in 7 years, that's 19.8% per annual on geometric average. Total comp from 48.6k to (expected) 305k, or 30% per annum. I think I am lucky, but I think I should make 500k a year, at least. |
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