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The word increment means an increase in something. A salary increment is simply an increase in your salary -- a pay raise. A salary is usually stated as an annual amount. For example, you might be hired at a salary of $25,000 per year. Salary increments are also stated as annual sums. Thus, you might get a salary increment of $4,000 per year. Keep in mind that a salary increment increases your base salary. Bonuses or other compensation are not considered salary increments.
Employers compensate employees for work performed in several ways. You might be paid a salary instead of an hourly wage. In addition, you may receive bonuses, commissions or other compensation over and above a base pay rate. Of course, if you are hired for a salaried position, you hope your starting salary will grow in time. That's where salary increments enter the picture.
