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Performance Appraisal and salary increments

  • Performance appraisal will be conducted twice in a year i.e. 1st cycle (between july and september) and 2nd cycle (between January and march) of every year.
  • Performance of each employee would be appraised by his immediate manager followed by their higher ups.
  • Some of the Key performance indicators (KPI) based on which performance will be regularly monitored and appraised are explained in the “KPI for appraisal” spreadsheet for each band / role / designation / project.
  • Performance appraisal may or may not be followed by a salary increment. This depends on various factors, some of which are
  • Performance of the company during the financial year
  • Profitability of projects being executed
  • Market conditions
  • Investments required for current and near future projects
  • Current cash flow
  • Status of receivable payments
  • Current debts etc
  • Salary hike based on performance appraisal will be applicable only once in a year, generally in first month of the financial year i.e April (salary paid in first week of may)
  • Work experience of an employee will be considered from current month if he / she has joined on or before 15th of the calendar month.
  • Similarly, work experience of an employee will be considered from next month if he / she has joined on or after 15th of the calendar month.
  • A new joinee who has joined between April and September of the current financial year and would be completing more than 6 months of service as on 1st april of the next financial year, is eligible for 2nd cycle of performance appraisal. Salary increment if any in this case, will be paid on a pro rata basis from april of next financial year (salary paid in first week of may)
  • A new joinee who has joined between October and march of the current financial year and who would not be completing 6 months of service as on 1st april of the next financial year, is not eligible for performance appraisal in the current financial year. Salary increment if any in this case, will be paid on a pro rata basis from april of financial year after the next one.
  • All other employees who have completed more than one year of service as on 1st of april of the next financial year would be eligible for salary increment (if any) based on performance appraisal, which will be paid from april of next financial year (salary paid in first week of may).
The detailed pro rata calculation is illustrated in the “pro rata salary calculation” spreadsheet