1. #1
    Unregistered

    Does the increment takes place on total salary amount or on basic salary only?

    I have recently completed one year with a company and waiting for increment. I have heard that increment takes place over the basic salary not over total amount. My total salary is 8000 and basic is 3500. If I get 10% increment then would it be over 3500 or 8000? It would be so less then and I think I should have negotiated it at the time of my appointment. Can I do something now?

  2. #2
    VonsVishakha Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    yes, the increment is over the basic salary. that is if 10% is the increment given to you then it will 3500 + (10% of 3500) = 3850. Now the other allowances that were previously applied on 3500 will now be applied over 3850. To explain with example say your HRA was 40% of the basic salary, so you were getting 40% of 3500 = 1400 as HRA. Now HRA will be 40% of 3850 = 1540. Hope I am clear to you.

    Please feel free to further clear your doubts

  3. #3
    Abhishek Chauhan Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    Hello,

    Many people have this kind of doubt in there mind.
    Now to answer that , the increment or the yearly increment of your salary happens on the basic salary of the employee and not on the whole salary.
    So the increment will happen on the Rs.3500 and not on Rs.8000
    yes you can talk to the company about it and tell them that you are not happy with the amount which they are paying to you.
    If they dont want to lose you they will increase your salary.

    -All the best

  4. #4
    venomous Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    Hello Friend,

    As far as increment is considered,It is always calculated on the CTC and it's not at all related with basic salary.And basic salary is computed on the basis of revised package.

    Eg:-If CTC offered to you is 4.2 lpa and basic salary is 10000 p.m. then after the increment of 30% your total salary i.e. package would become 5.5 lpa and basic salary would be in between 11500-12000.

    Basic salary is always kept in such a way that your tax could be saved.

    Keep working hard and stop worrying about the future.If you'll concentrate on your job then you can make a considerable progress.

    Hope It Helps!

    Thanks and visit again.

  5. #5
    prabhu Array
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    Red face Re: Does the increment takes place on total salary amount or on basic salary only?

    Hi,

    Increment is Calculated based on your CTC(Cost to Company) per year . Not the Basic amount .

    Assume your total pay is 8000 per month . so per year its 8000* 12 = 96,000 per year (CTC)

    Now , If the increment is 10% for the forthcoming year , then 96,000*10% i.e 96,000*0.1= 9600 per year

    So 9600/12 = 800 per month .

    Now your new salary will be 8000+800 = 8800 per month



    Thanks!!!!!!!!!!!

  6. #6
    looser Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?



    Increment is calculated based on your CTC per every year or for every 6 months.

    And based on your performance and experience ..

    Some times you will get increments based on company profit in that year..


    Cost to Company salary contain various components:

    1. Incentives or bonuses

    2. Conveyance allowance

    3. Medical allowance

    4. Vehicle allowance

    5. Leave travel allowance etc

    Thank you

  7. #7
    imman Array
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    Arrow Re: Does the increment takes place on total salary amount or on basic salary only?

    @@ HI @@



    @@ Increment amount in MNCs @@



    @_@ The increment will hit every year as per the performance and some MNC may offer every year too @_@@_@ The increment will be done on your total pay not on basic @_@@_@ The increment percentage can be done as per the company norms @_@@_@ You have 8000 as total and 10% is your increment then it seems that it will be raised to 8800 @_@@_@ Based on the total pay,your CTC(Cost to company) will change @_@




    @@ Thank you @@

  8. #8
    sreemauli Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    HELLO SIR......

    Increment is calculated based on your CTC per every year or for every 6 months.

    And based on your performance and experience ..

    Some times you will get increments based on company profit in that year..

    As far as increment is considered,It is always calculated on the CTC and it's not at all related with basic salary.And basic salary is computed on the basis of revised package.

    Eg:-If CTC offered to you is 4.2 lpa and basic salary is 10000 p.m. then after the increment of 30% your total salary i.e. package would become 5.5 lpa and basic salary would be in between 11500-12000.

    Basic salary is always kept in such a way that your tax could be saved.

    ALL THE BEST.......

  9. #9
    Raajkumar Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    Increment in the MNC or any company is based on the basic pay not on the CTC or other components.
    Basic pay is your salary so the increment is based on that.
    Usually the increment is 10% of your basic pay.
    If your basic pay is 9000 then your increment is 9000*10/100=900 rupees.
    With the increment you will get 9900 as your basic pay.

  10. #10
    samarth Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    HELLO SIR .....................





    yes you can talk to the company about it and tell them that you are not happy with the amount which they are paying to you.
    If they dont want to lose you they will increase your salary.Now to answer that , the increment or the yearly increment of your salary happens on the basic salary of the employee and not on the whole salary.
    So the increment will happen on the Rs.3500 and not on Rs.8000
    Basic salary is always kept in such a way that your tax could be saved.


    ALL THE BEST .......................

  11. #11
    vivekomar99 Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    Dear friend,
    The increment is totally depended on the basic salary of any employee. To have the clearance of this have a little calculation as
    If you have got 10% increment then it will 4500 + 10% of 4500 = 450, means 4500+450=4950. All other allowances given by your company will be applied on 4950. You could calculate all your expenses, T.A., D.A. & H.R.A with having a little calculation. Now I hope that you will be sure that increment is always calculated on your CTC, not on your basic salary.



    Thanks to be contacted.

  12. #12
    GANESHA Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?


    As far as increment is considered,It is always calculated on the CTC and it's not at all related with basic salary.And basic salary is computed on the basis of revised package.

    Eg:-If CTC offered to you is 4.2 lpa and basic salary is 10000 p.m. then after the increment of 30% your total salary i.e. package would become 5.5 lpa and basic salary would be in between 11500-12000.

    Basic salary is always kept in such a way that your tax could be saved.

    Keep working hard and stop worrying about the future.If you'll concentrate on your job then you can make a considerable progress.

  13. #13
    soundtrack2 Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    Increment is calculated on CTC that is COST TO COMPANY it include
    1) basic pay
    2) hra
    3) conveyance allowence
    4) travel allowence
    The company offers increment on your total CTC . For example of your total ctc is 5 lakhs and company offers 20% increment every year then after one year your ctc will be 6 lakhs as per the increment percentage.

  14. #14
    Boss Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    Yes, the increase is the basic salary. that is, if the increase is 10% then you will be given 3500 + (10% 3500) = 3850. Now the other benefits that were previously applied in 3500 as applied in 3850. To explain the example that your HRA was 40% of base salary, so we were getting 40% of 3500 = 1400 as HRA. HRA is now 40% of 3850 = 1540. I hope to be clear to you.
    Many people have this kind of doubt in the mind.
    Now, to answer this, or increase the annual salary increase that occurs in the employee's basic salary and wages in full.
    So will the increase in the Rs.3500 and Rs.8000
    yes you can talk to about this company and tell them that you are not satisfied with the amount paid to you.
    If you do not want to lose his salary increase.
    Increase is calculated on the basis of the CTC for each year or every 6 months.

    And based on their performance and experience ..

    Sometimes you get based on increases in company profits this year ..
    As the increase is considered, calculated and provided in the CTC is not at all related to the basic salary base salary.And calculated based on the revised package.
    For example:-If the CTC offered to you is 4.2 LPA and is the basic salary of 10000 hours then, after an increase of 30% of their total salary package, ie become 5.5 LPA and the base salary would be between 11500-12000.
    Basic salary is kept so that the tax could be saved.
    Increase in the CMN or any company is based on the CTC or basic salary not to other components.
    Basic salary is your salary so the increase is based on that.
    In general, an increase of 10% of his base salary.
    If your basic salary is 9000, then its increase is 9,000 * 10/100 = 900 rupees.
    With the increase in 9900 as they receive their basic salary.

  15. #15
    Srushti Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?


    As far as increment is considered,It is always calculated on the CTC and it's not at all related with basic salary.
    And basic salary is computed on the basis of revised package.Increment is calculated based on your CTC per every year or for every 6 months.And based on your performance and experience ..Some times you will get increments based on company profit in that year..
    Assume your total pay is 8000 per month . so per year its 8000* 12 = 96,000 per year (CTC)

    Now , If the increment is 10% for the forthcoming year , then 96,000*10% i.e 96,000*0.1= 9600 per year

    So 9600/12 = 800 per month .

  16. #16
    Ravi Kiran Mohapatra Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    HI,

    Now to answer that , the increment or the yearly increment of your salary happens on the basic salary of the employee and not on the whole salary.
    So the increment will happen on the Rs.3500 and not on Rs.8000.

    As far as increment is considered,It is always calculated on the CTC and it's not at all related with basic salary.And basic salary is computed on the basis of revised package.


    HOPE THIS WAS HELPFUL!!!!!
    GOOD LUCK!!

  17. #17
    Chittaranjan Array
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    Lightbulb Re: Does the increment takes place on total salary amount or on basic salary only?

    When increment is available first it is to be cleared.suppose your last basic pay is rs.34800-and starting basic pay is 9800/-now you know 9800/- is initial basic now you will reach to 34800/-by getting yearly increments say after getting 30 yearly increment you will reach to 34800/-.basic salary is a main part of total salary.now it is quite clear increment takes place in total salary of course it is purely maintained in goi and psu services.

  18. #18
    Puru Thaman Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    Hi,


    --Yup Salary Increment of an Employee will be Calculated on the rate of his Total CTC--



    CTC- Cost To Company



    ::It is the Total Pay of an Employee Per Month::


    ::As you said your Pay is 8000INR with the Basic Pay of INR 3500, your Hike will be put based on your CTC only::


    ::The Total CTC is 8000, for an year it would be 96,000::


    ::Salary Hike Percent is 10% which In Turn calculated as 96000/100*100= 9600 Per Year & which is 8000/100*10=800 Per Month::


    ::Finally your Salary after hike is INR 8800 Per Month & 1,05600 INR::



    --Better thought to Keep in Mind is Never Look for the Pay put your Effort & Work Hard, One Day the Appraisal & Salary Hikes Follows you--



    _)(_Thanks_)(_

  19. #19
    sairam6 Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    hai friends

    suggesting that don't think about the salary in the company

    first work and get the good name in the company

    the increment is based totally on the cost of the company

    if the company get the profit means ,then the company will give the increment

    after completing one year , the company will increase the salary ,based on your performance in the company

    the manager will give the grades according to your performance in the company

    the manager will give to the team numbers according to the performance

    the salary will increase by the HR ,based on your manager grades

    based on your totally salary only it will be increase

    hope this information helps you

    good luck

  20. #20
    abbebo Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    Hi. The increment is on the Basic salary only . If you are getting 10% increment it would be over your basic salary i.e. Rs 3500.

    It is like this everywhere. Since your Basic salary is less at the moment the increment would also be less but it will be beneficial in the long run

    This should have been considered at the time of appointment. Nothing can be done now.

    Take care of this in the future. Best of Luck. Thanks

  21. #21
    ritesh Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    The employment on the Basic salary only contract basis in which a fixed amount is paid to the employee per month.So see the terms & conditions of your appointment if the company get the profit means ,then the company will give the increment

    after completing one year , the company will increase the salary ,based on your performance in the company the manager will give the grades according to your performance in the company the manager will give to the team numbers according to the performance It is like this everywhere. Since your Basic salary is less at the moment the increment would also be less but it will be beneficial in the long run should have been considered at the time of appointment. Nothing can be done now.


  22. #22
    velocity Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    On your total salary only, the increment is being given.

    Once you join in any organization, they will provide you a offer letter.

    It contains the net salary amount with detailed mentioning of various benefits and cuttings.

    On your net salary only the increment will be given.

    It will be given as per your performance.

    The more you perform, the more chances you have to get good increment.

  23. #23
    Devi.career Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    Hello Friend,
    the increment takes place on the basic salary not on the net salary.actually what ever you get apart from your basic is variable pay like HRA,DA,TA..etc
    and those are not the actual amount this may vary time to time but basic for an employee is fixed uptill he get appraisal
    so the Hike always takes place on basic .because shift allowance and other can be any time changed if the management decides.
    Thank you.

  24. #24
    Devi.career Array
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    Re: Does the increment takes place on total salary amount or on basic salary only?

    Hello Friend,
    the increment takes place on the basic salary not on the net salary.actually what ever you get apart from your basic is variable pay like HRA,DA,TA..etc
    and those are not the actual amount this may vary time to time but basic for an employee is fixed uptill he get appraisal
    so the Hike always takes place on basic .because shift allowance and other can be any time changed if the management decides.
    Thank you.

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