Yearly increment - Salary.sg Forums
Salary.sg Forums  

Go Back   Salary.sg Forums > The Salary.sg Discussion Forums: > Income and Jobs

Income and Jobs Discuss jobs, career options and of course salaries




Yearly increment

 Citibank Cash Back Card - up to $350 cash back* - Click to Apply Now 
Reply
 
Thread Tools
  #1 (permalink)  
Old 13-07-2011, 04:23 PM
Verified Member
 
Join Date: Jul 2011
Posts: 14
Button is on a distinguished road
Default 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?

Reply With Quote
  #2 (permalink)  
Old 13-07-2011, 04:31 PM
Super Member
 
Join Date: Jul 2011
Posts: 115
undiscern is on a distinguished road
Default

Quote:
Originally Posted by Button View Post
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+

Reply With Quote
  #3 (permalink)  
Old 13-07-2011, 05:17 PM
Super Member
 
Join Date: Feb 2011
Posts: 274
miwashi is on a distinguished road
Default

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



SG Bus Timing App
SG Bus Timing App - the best bus app - available on iOS and Android


SGX Stocks Android App - check share prices
SGX Stocks [Android] App - check latest share prices on the go


SGX Stocks for iPad - check latest Singapore share prices
SGX Stocks [iPad] app
| SGX Stocks [iPhone] app
Reply With Quote
  #4 (permalink)  
Old 13-07-2011, 05:40 PM
Unregistered
Guest
 
Posts: n/a
Default 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.
Reply With Quote
  #5 (permalink)  
Old 13-07-2011, 05:41 PM
Super Member
 
Join Date: Jul 2011
Posts: 115
undiscern is on a distinguished road
Default

Quote:
Originally Posted by Unregistered View Post
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
Reply With Quote
  #6 (permalink)  
Old 13-07-2011, 07:43 PM
Unregistered
Guest
 
Posts: n/a
Default

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
Reply With Quote

  #7 (permalink)  
Old 13-07-2011, 07:52 PM
Unregistered
Guest
 
Posts: n/a
Default

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.
Reply With Quote
  #8 (permalink)  
Old 13-07-2011, 10:34 PM
Unregistered
Guest
 
Posts: n/a
Default

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
Reply With Quote
  #9 (permalink)  
Old 14-07-2011, 02:17 AM
Unregistered
Guest
 
Posts: n/a
Default

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.
Reply With Quote
  #10 (permalink)  
Old 14-07-2011, 10:21 AM
Super Member
 
Join Date: Jul 2011
Posts: 115
undiscern is on a distinguished road
Default

Quote:
Originally Posted by Unregistered View Post
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.
Reply With Quote
Reply

Bookmarks

« Previous Thread | Next Thread »
Thread Tools

Posting Rules
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Annual Increment for Civil Service 2011 bswuming87 Income and Jobs 4 10-04-2011 09:19 PM
Annual Increment 1nch3r Income and Jobs 0 12-11-2010 12:36 AM
Can your Increment beat Inflation? Salary.sg Investments and Net Worth 9 24-04-2008 03:37 PM
Salary Increment to be 5.2% Salary.sg Income and Jobs 0 25-09-2007 12:55 PM

» 30 Recent Threads
SIM-UOL fresh grad starting pay ( 1 2 3... Last Page)
3,174 Replies, 1,335,532 Views
Compare civil service salary ( 1 2 3... Last Page)
10,719 Replies, 5,927,676 Views
Lawyer Salary ( 1 2 3... Last Page)
9,621 Replies, 3,085,955 Views
Starting Pay for CS/Ministries... ( 1 2 3... Last Page)
156 Replies, 36,621 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
2,726 Replies, 1,136,613 Views
OCBC Graduate Talent Programme... ( 1 2 3... Last Page)
338 Replies, 115,230 Views
DBS tech seed programme ( 1 2 3... Last Page)
32 Replies, 4,444 Views
How much are you earning per annum? ( 1 2 3... Last Page)
12,051 Replies, 3,847,286 Views
Career as Teacher ( 1 2 3... Last Page)
2,887 Replies, 1,758,422 Views
MAS : Mid Career Professionals ( 1 2 3... Last Page)
226 Replies, 137,889 Views
ITE lecturer ( 1 2 3... Last Page)
140 Replies, 134,051 Views
Job Application with MOE... ( 1 2 3... Last Page)
246 Replies, 225,159 Views
Engineer Pay ( 1 2 3... Last Page)
121 Replies, 47,066 Views
Fresh grad wanting to know about... ( 1 2)
17 Replies, 5,465 Views
Number of FT in Singapore coming... ( 1 2 3)
23 Replies, 7,946 Views
Ex-MOE Teachers ( 1 2 3... Last Page)
81 Replies, 120,574 Views
Where would you invest your money... ( 1 2)
18 Replies, 11,020 Views
MasterCard Graduate Developement... ( 1 2)
11 Replies, 5,059 Views
DBS Graduate Associate Program ( 1 2 3... Last Page)
745 Replies, 374,621 Views
Civil Service Performance Bonus ( 1 2 3... Last Page)
1,630 Replies, 1,345,862 Views
Anyone jobless for a long time... ( 1 2 3... Last Page)
3,006 Replies, 1,146,705 Views
Invitation to apply to civil...
0 Replies, 212 Views
HSBC Graduate Programme 2021
6 Replies, 432 Views
ST Electronics ( 1 2 3... Last Page)
873 Replies, 260,577 Views
Looking for job referral,...
5 Replies, 528 Views
Diploma in Digital Marketing at...
4 Replies, 2,528 Views
How rich/poor am I compared to... ( 1 2 3... Last Page)
44 Replies, 34,875 Views
Employment agency taking me to...
2 Replies, 151 Views
[advice] Recruitment agency... ( 1 2 3)
21 Replies, 3,254 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 10:46 PM.


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