Yearly increment month change - is the company liable to pay the arrears to employees?

Sandra D'souza
In my company prior to my joining, the yearly increment was being carried out in the month of Oct. But this year, the management decided to do the increment in Mar 2018 instead of Oct 2017. So, is the company liable to pay the arrears to employees from Oct? Please note increment month is not mentioned in our company employee handbook. We are registered under the Goa Shop & Establishment Act.
Prashant B Ingawale
For an increment, there is no specific Statutory Act or Law, but if it is delayed, employees may start looking for better opportunities outside.
umakanthan53
Dear Sandra,

Salary/wages and their structural composition, etc., are initially matters forming part of the contract of employment. Their periodical revision subsequently becomes a matter of collective bargaining or, in the absence of collective bargaining, a matter of the employer's discretion subject to any legal restrictions applicable to the establishment. Therefore, by implication, "increment" refers to the amount of periodical increase with reference to the initial salary or wages as agreed upon between the employer and employees. In the absence of any such agreement, employees cannot claim it as a matter of right as long as the existing wages do not fall below the statutory minimum wages. In my experience, employers who strictly adhere to the statutory minimum wage rates do not grant any periodical increments as the dearness allowance is revised periodically every six months or every year.

Thank you.
Sandra D'souza
Thanks a lot for the valuable advice.

---
Thank you for the valuable advice.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute