What is Appraisal?

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An appraisal is a periodic review of an employee's performance, usually yearly, that can lead to an increment, a promotion or variable pay. It is set by company policy, not by a fixed rule. Under the Code on Wages wages are what the terms of employment provide, so your letter and policy decide the outcome.

Example

After the yearly appraisal your fixed pay rises. Ask for the revised salary breakup in writing and check basic pay, allowances and PF, because the Labour Codes use one definition of wages.

See CTC and variable pay.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.