Procedure Title Salary Adjustment Procedure No. HR-CP-01
Division Human Resources Revision No.
Effective Date Page 1 of 2
Purpose : To reward the employees, who have performed their jobs effectively with their dedication and effort. The salary adjustment will base on particular reasons ie. individual and company’s performance, prior agreement between employee and company, special decision of company, etc.
Procedure :
1. Annual Salary Adjustment
1.1Budget of annual salary adjustment should be proposed for the Executive Board’s approval in December.
1.2 The annual increment shall be regarded as a privilege and not an obligation.
1.3 Total annual increment will be strictly controlled to not exceeding the approved budget.
1.4 HR will issue a letter of salary increment to staff as well as update it in staff personal file.
1.5 If the employee’s performance is not up to standard, supervisor has full authority to refuse the increment or to delay the increment until the required standard is achieved. Warning letter for performance improving must be issued to such employee.
2. Salary Adjustment from Promotion
2.1 In case of probation before confirmation, it is recommended to adjust the salary of the promoted staff when she/he completely pass such probation.
2.2 Appreciation letter that indicates new salary issued by HR will be send to promoted staff.
2.3 Salary adjustment from promotion will be capped at 20%. More increasing has to be approved by Executive Vice President.
2.4 HR will update new position and salary in personal file.
3. Salary Adjustment after Probation
3.1 Salary adjustment after probation can be made only when it had been agreed prior to the employment. It must be specified in Personal Action Form (PAF).
3.2 Adjustment without prior agreement should be avoid, unless it has approved by General Manager.
3.3 HR will send letter of confirmation to staff and update his/her file.
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4. Special Adjustment
4.1 Special adjustment of salary could be made when necessary ie; to catch up high competitive market, to retain high potential staff, to make internal equity, etc.
4.2 Supervisor has to describe the reason as well as recommendation for special adjustment.
4.3 Special adjustment of staff level 1 to 3 will be approved by Executive Vice President and level 4 to 8 approved by General Manager.
4.4 HR will proceed PAF for approval and file, and letter of new salary to staff.