What is Appraisal / Increment?
An appraisal is a periodic review of your performance that often determines your salary increment, bonus and promotion for the coming cycle.
Key takeaways
- An appraisal is a periodic review of your performance that often determines your salary increment, bonus and promotion for the coming cycle.
- Appraisal / Increment matters when you read a salary slip, compare job offers, or plan your career.
- Knowing how Appraisal / Increment works helps you make sharper, better-informed job decisions.
Appraisal / Increment — meaning & explanation
A performance appraisal is a structured evaluation of how well you met your goals over a review cycle. The outcome typically feeds into decisions on your salary increment, bonus, and any promotion.
In India, most companies run appraisals annually, sometimes half-yearly, often tied to KRAs or KPIs agreed at the start of the cycle. The increment is the raise applied to your salary as a result.
Strong, well-documented performance in an appraisal directly affects your earnings growth. Knowing how your goals map to the review helps you make the case for a better increment or promotion.
Related glossary terms
KRA (Key Result Area)
A KRA (Key Result Area) is a broad area of responsibility in your role where results are expected, defining wh…
KPI (Key Performance Indicator)
A KPI (Key Performance Indicator) is a measurable value that shows how effectively you or a team are achieving…
Variable Pay
Variable pay is the part of your compensation that depends on performance or targets, paid on top of fixed sal…
CTC (Cost to Company)
CTC (Cost to Company) is the total annual amount an employer spends on you — salary plus all benefits and cont…
Probation Period
A probation period is an initial trial phase in a new job during which the employer assesses you before confir…
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More glossary terms
Appraisal / Increment — FAQs
What does Appraisal / Increment mean?
An appraisal is a periodic review of your performance that often determines your salary increment, bonus and promotion for the coming cycle.
Why does Appraisal / Increment matter to a jobseeker?
Strong, well-documented performance in an appraisal directly affects your earnings growth. Knowing how your goals map to the review helps you make the case for a better increment or promotion.
Is Appraisal / Increment the same as Performance appraisal?
Yes — Appraisal / Increment is also commonly called Performance appraisal, Salary increment, Annual review. An appraisal is a periodic review of your performance that often determines your salary increment, bonus and promotion for the coming cycle.
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