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Post by kittycat on Jul 5, 2015 12:26:31 GMT
Hi everyone,
My husband joined Aramco Dec 28th, 2014 engineer GC12. He is doing good at the ob and his supervisor is satisfied with his progress and performance. He received a letter today informing him of his merit increase which come up to a 1% of his monthly base salary. From the research i did on the forum an M gives you around 3 to 5% increase. What do you think is this a normal percentage? if not what should he do or speak to? also is the merit increase is different than the target bonus?
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Post by bogiefrommuskogee on Jul 5, 2015 12:38:44 GMT
The percent increase not only depends on the PMP rating but also what percentile (25%) you are in within the grade code. If you are in the highest 25 percent, percent increase will be reduced. It has been my experience that the actual percent increase is pretty much an automatic calculation. I don't think they play around with it.
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Wutz
Senior Member
Posts: 143
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Post by Wutz on Jul 5, 2015 15:31:00 GMT
I think bogie has identified the most likely reason for a 1% raise - if you're husband is very close to the top of the GC12 pay band (which varies by nationality), the raise will be reduced. Also, you're not working with this year's raises if you think that an 'M' rating got 3-5% - the avee for E this year was in the lower half of that range. Past year's avees were higher, but this year reflects the reality of lower oil prices and low raises industry-wide.
Wutz
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Post by Welshman on Jul 5, 2015 16:05:48 GMT
Hi Kittykat,
I started in late October 2014 and was informed that normally a merit raise is not paid to anyone who joins the organisation after 1st October (same as PMP bonus) i.e. if you start in December 2014 your first merit increase should theoretically be in July 2016 as you are deemed too new to rank. There is discretion within each department to actually give a rise in your first year like your husband but he would have received a pro rata payment. He has only received less than half of the percentage he would have received because he only started in late December (he has probably only received an increase from 1st January 2015 to 1st July 2015). I was given an E but had a lower percentage payment due to the my start date. Hope this helps
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Post by kittycat on Jul 5, 2015 20:30:19 GMT
Thank you all for the reply it makes sense now. So the target bonus is different than the merit increase correct me if i'm wrong.
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Post by bogiefrommuskogee on Jul 6, 2015 3:02:25 GMT
If you are referring to the SAIP, that is calculated on base salary with multipliers based on grade code. The variable is the company performance factor and is equally applied to everyone. Again, this is a straightforward calculation. The SAIP is not the same as PMP merit increase and it gets paid in March.
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Post by Welshman on Jul 6, 2015 16:25:33 GMT
Hi Kittycat,
Your husbands target bonus as indicated in his offer pack is the SAIP (performance bonus) as described above but once again he will not receive any incentive bonus until March 2016 due to his start date.
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Post by bogiefrommuskogee on Jul 7, 2015 13:33:16 GMT
If your husband is US payroll, there is an additional multiplier. It is (1 - IRS tax %).
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Post by kittycat on Jul 7, 2015 13:43:20 GMT
thank you all for the reply really appreciate your help
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