My salary has not been reviewed in two years, is this legal?

Q. I am not happy with my current job.

I am an assistant procurement officer in a manufacturing company, and we have not had a salary review for the past two years although it is indicated on my confirmation letter.

What does the law say about this? Should I consider looking for another job?

In these difficult economic times, you should appreciate that you have a job and a pay cheque at the end of the month. I am sure you have seen in print media and television that many companies are restructuring and downsizing their workforce to reduce on costs.

That said, annual increments are usually not a condition of employment, so I am pleasantly surprised that in your case, you have been promised an annual review.

There are many factors that determine whether a company will give annual salary review to staff or not. How is the company you are working for performing?

If the performance is below budget, then obviously there will be no forthcoming review. Annual salary review in most organisations is pegged on individual performance of the employee. This performance is determined through annual performance appraisal.

Long-term investment may also impact on short-term commitments like salary reviews. Is your Company expanding and investing in machinery? If yes, this could be the reason the management is not able to honour the promise to review your salary.

Salary review has different components. We have the merit increment which compensates good performance. Cost of living adjustment (COLA) which cushions employees against the increase in inflation rate, and market adjustment, which compares what other companies pay employees of the same level.

In a situation where the inflation rates are stable, the employee has not performed and they also compare favourably to the market, then it would not make sense to review salaries.

I suggest that you approach your human resources department to understand the reason you have not received any review for two years. Note also that the decision to change employers should not just be informed by salary, you should consider other factors such as career growth, training opportunities and work environment.