Increment meaning: what is a salary increment?
Increment meaning: an increment is an increase in an employee's pay, usually decided at a yearly review and applied from a set date. In India the word is the everyday term for a raise. The increase may apply to the whole CTC or only to parts of it, so ask for the revised breakup in writing.
Increment, hike and raise
In Indian workplaces increment, hike and appraisal hike usually mean the same thing: higher pay after a review. In the US the usual words are raise or merit increase. A promotion raise is tied to a new role, while an annual increment is tied to performance and the company's pay cycle. Whether you receive one is set by your contract and company policy, not by a general rule.
What to check in an increment letter
Look at the effective date, the new CTC, and whether the fixed, variable and benefit parts changed in the same proportion. Percentage figures can hide a change in take-home pay, because some parts such as variable pay depend on targets. Keep the letter with your offer letter and payslips.
Example
A company announces a yearly cycle that takes effect from the first of April. An employee is told her fixed pay rises by a stated percentage and receives a revised pay breakup showing the new monthly components.