You are conflating two issues: reward based on merit and the challenges faced by the lower income. At the risk of sounding harsh, if someone performs badly, why should she or he get any increment or performance bonus? Unless of course, everyone in the group is a top performer, in which case the bell curve could be unfair as it artificially forces someone to the bottom of the curve.

It doesn't work that way
 

This article says it best. The reality is that companies don't look at inflation as a valid rationale for giving increments. It is based on the company's financial performance (ie profitability, forecast of future profitability, ensuring sufficient cash flow for investments, acquisitions, share buyback etc) and the cost of labour in that market.

Why Inflation Doesn’t Matter When Calculating Salary Increases

s://.linkedin.com/today/post/article/20141202233944-2472269-why-inflation-doesn-t-matter-when-calculating-salary-increases

yes, I still don't see why the clerk deserve a raise. sales guy should be doing their primary job, bringing in cash flows and sustain the growth. commissions r just an incentive to perform.

broken idea of fairness... fairness does not mean everyone get the same reward. fairness means the better and deserving one get more reward and those that are at the bottom get little or nothing. if u think u r stuck in a role that dosnt let u perform, then change ur job.... if u can't, it jus means u lost the competition in finding a job with prospect.. complaining that the consolation prize is not attractive enough wont change anything.

No. People should not get an increment or a reward just because they are in lower or middle income groups. This is a salary. A salary is to reward for your work, your productivity. A salary is not given based on your NEEDS. It is given based on your WORK.

Yes, we should help the lower income group. But not by throwing free money at them. That does not work.

What works is subsidising their children's education. Encouraging and subsidising the adult's upgrading and continual education so that they can have more skills and hence bargain for a higher salary also works. What works is giving these people the means and opprtunities to better themselves. Not just giving money to them.

Actually, most of these quotas are filled by people who resign. Unless maybe the turnover rate is so low that it's not even 3 - 5%(which is unlikely).

Unfortunately the bell curve excludes those who left the company through the year. Only those who are still around for the annual performance review are included.