Basic principles for fixation of increments

The scales of increments are fixed on the principles of financial capacity of the employer and the region-cum-industry basis. Once it is found that the employer has the financial capacity for sustaining the burden of increments, the award of annual increments is to be held to be a normal rule. The scales of increments fixed under the settlement or award cannot be stopped unless it is proved that the employer is incapable of bearing the financial burden of such increments. In such cases, the approach to the problem should always be motivated by the requirement that an employer must ensure and achieve industrial peace which is essential for the development and expansion of industry. And this could be achieved not merely by having on the one hand and investing public who would be attracted to the industry by a steady and progressive return on capital which the industry may be able to offer but also by securing a contented labour force on the other hand.