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.

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
Factual Local Bank Salaries - DBS... ( 1 2 3... Last Page)
161 Replies, 76,615 Views
Civil Svc/ Statboard - Typical... ( 1 2 3... Last Page)
2,192 Replies, 971,905 Views
Queries about Cpib application ( 1 2 3... Last Page)
1,091 Replies, 500,495 Views
Roles in accenture singapore ( 1 2 3... Last Page)
381 Replies, 251,174 Views
Compare civil service salary ( 1 2 3... Last Page)
10,112 Replies, 5,588,876 Views
Submitting My Resume To ST... ( 1 2 3)
21 Replies, 22,373 Views
Tax ( 1 2)
14 Replies, 3,593 Views
Lawyer Salary ( 1 2 3... Last Page)
7,623 Replies, 2,615,628 Views
MINDEF DXO (All FAQ on it) ( 1 2 3... Last Page)
3,298 Replies, 1,909,376 Views
DBS Management Associate Program... ( 1 2 3... Last Page)
1,787 Replies, 272,977 Views
Ceca
2 Replies, 236 Views
Changi Airport Group ( 1 2 3... Last Page)
378 Replies, 335,069 Views
Career as Teacher ( 1 2 3... Last Page)
2,668 Replies, 1,608,959 Views
Feeling helpless, need advice... ( 1 2)
11 Replies, 929 Views
Anyone jobless for a long time... ( 1 2 3... Last Page)
2,916 Replies, 1,086,190 Views
Anyone being hired during covid... ( 1 2)
19 Replies, 1,612 Views
anyone working at NCS ? ( 1 2 3... Last Page)
395 Replies, 288,048 Views
How much do you earn and save? ( 1 2 3... Last Page)
103 Replies, 14,276 Views
ST Electronics ( 1 2 3... Last Page)
688 Replies, 212,045 Views
Mid-Year Civil Servant Bonus 2019 ( 1 2 3... Last Page)
1,633 Replies, 784,342 Views
What's the graduate officer... ( 1 2 3... Last Page)
54 Replies, 13,213 Views
Possible to earn passive income... ( 1 2)
15 Replies, 4,182 Views
Anyone working in NTU... ( 1 2 3... Last Page)
91 Replies, 92,867 Views
AML/Compliance/KYC professionals... ( 1 2 3... Last Page)
1,380 Replies, 565,242 Views
Please Share DBS Average Months... ( 1 2)
17 Replies, 3,244 Views
Sharing my Passive and Active...
2 Replies, 568 Views
where can i buy nintendo stock?
6 Replies, 3,447 Views
[advice] Recruitment agency... ( 1 2)
15 Replies, 1,975 Views
HR Career advice
3 Replies, 1,464 Views
High Finance Thread ( 1 2 3... Last Page)
89 Replies, 15,629 Views
Powered by vBadvanced CMPS v3.2.2



All times are GMT +8. The time now is 12:23 AM.


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