The adjustment of the complete salary, including several primary components, is known as salary revision. It differs from a salary hike in which the change is made to only one component of the entire salary structure. Salary revision may vary depending on the performance. An employee’s salary can be increased or decreased depending on the performance or any other factor.
The major elements of a salary structure include basic pay, PF, and gratuity. Most of the companies also include house rent allowances, special payments, travel expenses, as well as medical coverage. As a result, if there is a 10% salary revision, there would be a raise of 10% in every component. On the other hand, if there is a 10% increase in the salary hike, it would mean a 10% hike in any one component which mostly is the basic pay.
Salary Revisions are done in the following situations:
Also, See: Salary Variance Report
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