Establishing an annual salary increment policy will help make employees feel valued and motivate them to perform at a high level, thereby increasing employee retention.

Salary increases may involve increases based on merit and good performance, and regular adjustments based on cost of living increases and market values.

This model policy is based primarily on guidelines from Canada’s HR Council. It may be included as part of a broader policy on salary/compensation.

HR managers in any part of the country may adapt this Model Policy for use in their own workplaces.