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?

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+

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

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.

President office Singapore. 26% increment
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.

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.

Finally have your history - you sound like that rude chap on the Cornell/SMU thread.

I'd agree and say that at $305K, you're underperforming in banking in your mid-30s given that you've been in banking your whole life. Not seriously underperforming, but mediocre enough that at the level where if the global banks start to cut back, you could on the pink slip line again.

Don't forget your rise in base is probably not your performance but the Dodd Frank increases so I would be circumspect about the $120K bonus projection this year...

Don't mind if you'll restrain the rudeness a little when you respond (if you're the other guy. if not sorry) Lets keep it civil.

don't know what you are talking about, and i am turning 31 this year. i'm happy with 300k+ a year, and i see it jumping to 500k+ when i hit 35.

Annual Increment in Government Sector
 

Hi,

Anyone knows what is the annual increment for Ministries and Stat. Board? I heard it is 3 to 5% for Stat. Board. How about Ministries ($200 to $300 for Fresh grads to few years experience?)?

Thank you

You actually troll the forum to look out for profiles of ppl who pissed you off? talk about narrow-mindedness. gee..

================================================== ====

Wow! Great insights from everyone who had contributed. At least I now confirm that there are MNC firms which underpay/negative their staff.

Note to others: Please stand firm against underpay/negative (less than 3% or below Consumer Price Index) firms. Move on to another firm which better value you.

Don't bluff.

31 this year means you are born in 1980.

How to graduate in 2004 when you are 24 with masters? Unless you are a girl or you are not a local boy.

TYPICAL local boy with ns (2.5 years if you are 1980) will ord when they are 21. Same year intake for uni and you will grad after 3 years (no honours) at 24. With masters, you should at least be 25/26.

Please tell me how.

there's nothing to bluff. my birthday is in oct, so when i ORD in may 2000 (airforce), i was 20 (going 21). In Aug 2000, I started NUS engineering, and they have this AMP (accelerated master program; not sure if they still have it now) that you can apply after 1st sem. if selected, you can get your BEng and MEng in 4Y-4.5Y. Condition is you need to maintain > 4.5 CAP. Ask anyone from NUS engineering.

So when i grad in 2004, i was 23 going 24. In 2011, I am 30 going 31.

u have 2 masters?

Stat board & ministry will usually follow nwc's guidelines.

This is where it doesn't make sense.

How can you ord in 2000?

Born in 1980

1987/92 - p1/p6
1993/96 - s1/s4
1997/98 - j1/j2

enlistment in jan 1999, should ord in may 2001

where did that missing 1 year go?

i'm also born in 1980 and i also took 4 years for my degree. so when i came out to work, it was 2005 june.

maybe he is in gifted program, & skip pri sch 1 year.

Just because you are normal doesn't mean everyone is like you. obviously the guy is pretty smart. There is nothing surprising if he skips a grade or two in pri or sec school.

go google He Rumin, a psc scholar who did his undergrad and phd at MIT in 4 years. it normal takes 4 years to do the undergrad and another 4 years to do a phd. why don't you ask him where did that missing 4 years go?

don't just look at the world with your "small eyes and small nose" (chinese translation). there is heaven beyond heaven and genius beyond genius. childish.

He's not being childish. You are for accusing him. It's perfectly legitimate to question the varacity of people on this board because of the constant inflated claims. But the guy does seem legit from his defence.

Gifted program where got skip 1 year... unless you are talking about versus the Normal stream.

OK. At 31, you're fine, but still you're not an outstanding performer. At BB investment banks, you can tell you are average when your bonus is less than your salary. I would judge from your base you're probably at Associate or Senior Associate level. If you get promoted to VP, you would be at around $200K base, but most of us really don't care about what our base is. It's all about the bonus. Watch out though. CS and Deutsche are already cutting.

You might consider that your sideline business might be affecting your performance. Managers can tell when you're not putting in 200%. At the end of the day, if you want to earn those $1m jobs in banking you have to put in everything you've got and not be distracted. Sidelines are peanuts compared to the potential compensation.

please, there are so much crap going on in this forum because there is no requirement to sign up as a member or whatsoever. everyone can just post as unregistered. who knows you might just be him and currently trying to defend "him" as a third party.

skipping grades in singapore is uncommon and if he did really skipped grade when he was young, he would be a scholar already and would not have taken this path.

and for your information, it's he ruimin not rumin. and he is a personal friend of mine!

ruimin's a genius in physics!

TS, don't forget salary adjustments on top of annual increments. The difference is very little even with a slightly higher starting salary.

anyone know what is the annual increment for st aerospace? for A, B and C grader?