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How to Get a Salary Hike in 2023: A Step by Step Guide

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November 16, 2022


What’s Inside

If you’re looking to negotiate a salary increase or appraisal, it's important to prepare yourself with research, a clear argument, and a career roadmap. In this blog post, we'll go over the steps you can take to make your case and ensure that you're on the right track for long-term success. From doing your research to making a career roadmap, we've got you covered. Keep reading to learn more.

Do Your Research

Check how much others in your industry with a similar experience level are getting paid. You can get these insights from websites like Naukri, Glassdoor, etc. This is an important step because it helps you benchmark yourself against the industry average.

Frame Your Argument

If you find that you are below the average, or if you think you deserve well above the average for reasons of your performance, then you should frame it in a clear and concise manner. Here are some broad pointers to base your argument upon:

  1. Recap your performance in the company.
  2. Outline your contributions to the business or equivalent.
  3. Summarize your learnings and skill growth over the past year.
  4. Make a proposal.

You can read more about writing an increment letter for a salary raise here.

Weigh Out the Pros and Cons

Just because you’ve made your arguments, doesn’t mean that you will surely get your hike. Consider your current role at the company and see if there’s a growth path for you. In which case, you can consider making a trade-off between the growth opportunities and the money, because the growth will translate to better salaries in the future.

Speaking of growth, here’s what you should consider.

Make a Career Roadmap

While past performance and industry benchmarking are great ways to make a pitch, they can only solve for the short or mid-term. In the long term, you will need to gain more skills, perhaps those that others in your peer group don’t have. This is one way to ensure you are seen as different from the pack, skill-wise.

Just like you surveyed the market with regards to the pay scale, you should also look at surveying the skill gap in the market. Start acquiring skills that the market might need in a few years from now.

For example, if you’re a software engineer, you may want to learn new programming languages. If you’re a project manager, you might want to either get an MBA or get certified as a project manager.

Here are the steps visualised as an infographic:

You can get rewarded even without a salary hike. Here’s how:

Fi Money, along with its licensed partner Federal Bank, offers a salary program with many benefits, including:

  • 2% cash back when shopping with Fi using UPI or Debit Card
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  • Exclusive deals and gift cards from top brands like Amazon and Swiggy
  • No minimum balance requirement
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  • Priority customer service
  • ₹500 Amazon voucher as a joining bonus
  • Features like Connected Accounts, Analyser, Goal-based saving, SIPs, and automatic payments to help manage/grow your money
  • Salary users on Fi can now top-up their Health Insurance up to ₹20L

Frequently Asked Questions

1. Is a 5% hike a good hike?

The amount of a salary increase is highly subjective and dependent on two factors: the industry you work in and your base salary. It's important to remember that percentages are simply a way of comparing two figures, and are a relative metric. Different industries experience varying average hike percentages, so this also plays a role.

‍2. Is the salary increased after the probation period?

There is no hard and fast rule. Probation only confirms your employment as permanent, but it doesn't necessarily lead to a salary hike. However, in some cases, employers do offer a hike, which should be explicitly mentioned in your offer letter.

Want to know more? Read on

How to negotiate your salary or appraisal like a pro

How to negotiate your salary: Tips and Examples

Here’s why you should invest your first salary in Mutual Funds

Your take home salary breakup explained in memes


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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