It refers to the process in which HRM revises an employee’s salary by observing their dedication, way of working, or contribution to the company. By revising an employee’s wages, the company can satisfy and retain the employees, which in turn can result in higher work performance. It refers to the revision of an employee’s entire salary. It is very essential to value and reward the employees for better success and regular growth. Salary revision is applied to all the salary components, including PF, basic pay, gratuity, rent, medical, travel, and special allowance.
There is a specific criteria for accessing a salary revision of an employee:
- If the salary structure of the employee does not match the market trends
- If the employee is promoted to the new position
- If the salary is revised will be done after a prohibition period for the employee
