Salary.sg Forums

Salary.sg Forums (https://forums.salary.sg/)
-   Income and Jobs (https://forums.salary.sg/income-jobs/)
-   -   Yearly increment (https://forums.salary.sg/income-jobs/1415-yearly-increment.html)

Button 13-07-2011 04:23 PM

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.

Comments?

undiscern 13-07-2011 04:31 PM

Quote:

Originally Posted by Button (Post 14186)
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.

Comments?

That is how it works in practice. That is why the Fresh graduate Y MUST job hop to another company after 3 years and his pay will be about 5k+

miwashi 13-07-2011 05:17 PM

Unless, like me, you have never received job offers with higher pay, only pay cuts.

Unregistered 13-07-2011 05:40 PM

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.

undiscern 13-07-2011 05:41 PM

Quote:

Originally Posted by Unregistered (Post 14193)
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.

President office Singapore. 26% increment
Singapore President's annual salary tops S$4.2 million - Yahoo! News

Unregistered 13-07-2011 07:43 PM

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

Unregistered 13-07-2011 07:52 PM

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.

Unregistered 13-07-2011 10:34 PM

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

Unregistered 14-07-2011 02:17 AM

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.

undiscern 14-07-2011 10:21 AM

Quote:

Originally Posted by Unregistered (Post 14212)
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.

You made the right move to go to nyc and then come back.. If you had remained in SG, difficult to get what you are getting now.


All times are GMT +8. The time now is 06:22 PM.

Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.3.2