What is a Merit Increase?
A merit increase is a performance-based salary increase granted to an employee whose performance and productivity is consistently above that normally expected and required. The current performance appraisal for the employee must be on file in Human Resources Management (HRM). Merit increases may be granted only if the employee has been employed for at least six continuous months before the effective date of the increase, and the effective date is at least six months after the employee’s last promotion, transfer, or merit salary increase. A Merit increase should not be confused with a Cost of Living increase.
