A salary increase is a rise in an employee's monthly payments or salary. In most cases, a salary increases when an employee is promoted, however there are many other reasons for an employee to get increased salary including doing more duties than a job requires, working in an organization for long time, gaining seniority, contributing to organizational development and completing an important task.
There are three types of salary increases which are;
- Merit increases
- Promotional increases and
- Equity Adjustments
1. Merit increases is a salary increase that is used to reward employees who perform well at work. It is a performance based pay raise.
2. Promotional increases is a salary increase to the promoted employees. It is granted when an employee is moved from lower position to higher position in a job.
3. Equity adjustment involves raising an employee's salary to level the salary difference from other employees who are doing the same job.
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