Merit Increase Guidelines and Budget Calculations
Kamsa uses Merit Increase Guidelines to calculate both the salary increase recommendations and the total salary increase budget during a Comp Review. These guidelines are based on each employee’s country, compa-ratio, and, if provided, performance rating.
By default, Kamsa provides recommended salary increase guidelines by country, aligned with the latest market trends. You can adjust these guidelines as needed to align with your budget.
How Merit Increase Guidelines Work
1. Compa-Ratio
Compa-ratio compares an employee’s current salary to the market rate for their job.
A compa-ratio of 100% means their pay is right at market.
The typical competitive range is 85%–115%.
Below 85% = underpaid; above 115% = over market.
2. Performance Rating (Optional)
If you choose to use performance ratings, upload them using the Performance Ratings template.
Kamsa will then apply salary increase guidelines that consider both the employee’s performance rating and compa-ratio.
This allows for a more tailored and accurate budget calculation.