Salary Revision

Salary revision the revision of the entire salary structure including all the primary components. It differs from a salary hike in which an increment is made to just a single component of the entire salary structure.

The components of the salary structure mainly include basic pay, PF, and gratuity. Most companies also add house rent allowance, special allowance, medical and travel allowance. Accordingly, if there is a 10% salary revision, it would mean an increase of 10% in all the components. However, a 10% salary increment would mean an increase in 10% of anyone component which mostly is the basic pay.

Salary revision may be done in the following circumstances:

  • If the salary structure of the company does not match that of the market.
  • If it is agreed that salary revision would be done upon successful completion of probation period.
  • Salary revision upon an employee’s promotion to a new position.