Step 1
What a merit increase is
A merit increase is a raise to your base pay that recognises your performance and growth over the past year.
Not the same as
Promotion
A move to a bigger role.
Not the same as
Market adjustment
A change when pay for a job shifts in the market.
Not the same as
Bonus
A one-time payment, not added to base pay.
Step 2
The annual merit cycle
- 1
[Sample: Jan 15]
Self-review
You reflect on your year: goals, wins, skills and safety.
- 2
[Sample: Feb 1]
Manager review
Your foreman or manager rates performance and talks it through with you.
- 3
[Sample: Feb 20]
Calibration
Leaders compare ratings across teams so they're applied consistently.
- 4
[Sample: Mar 5]
Approvals
Recommendations are checked against budget and approved.
- 5
[Sample: Mar 20]
Letters
You receive a letter explaining your outcome.
- 6
[Sample: Apr 1]
Effective date
Your new rate starts.
Step 3
How decisions are made
- ✓Your performance rating
- ✓Where your pay sits in its range
- ✓The overall merit budget
- ✓Skills and certifications you've shown
- ✓Your safety record
Leaders use a guideline grid like the one below. People lower in their range with strong ratings usually see a larger percentage.
Sample — HR sets actual guidelines| Rating ↓ / Range → | Low in range | Mid range | High in range |
|---|---|---|---|
| Exceeds | [X.X%] | [X.X%] | [X.X%] |
| Meets | [X.X%] | [X.X%] | [X.X%] |
| Partially meets | [X.X%] | [X.X%] | [0%] |
Step 4
Who decides
1
Your manager
Recommends an increase based on your year.
2
Leadership
Calibrates across teams so it's consistent.
3
HR
Reviews for fairness and consistency.
Step 5
What you can do
Set goals early
Sit down with your foreman or manager at the start of the year and agree what good looks like.
Keep certifications current
Renew licences and safety certs on time and log new ones with your manager.
Ask for feedback mid-year
Don't wait for the review — a quick check-in gives you time to adjust.
Step 6
Questions people ask
When will I hear?+
Letters go out near the end of the cycle. HR confirms exact dates each year and your manager will let you know when to expect yours.
When does it show in my paycheck?+
On the first full pay period after the effective date. Depending on payroll timing it may be the following check.
Can I get a merit increase and a promotion in the same year?+
Yes. They're separate. A promotion reflects a new role; a merit increase reflects how you performed in your role. HR can explain how timing works if both happen.
What if I'm new?+
If you joined late in the cycle you may not be eligible this year, or your increase may be prorated. Ask HR for the eligibility cutoff.
What if I disagree?+
Start with a conversation with your manager. If you still have concerns, contact HR — we'll review it with you confidentially.
Who do I ask?+
Your foreman or manager first, then your HR partner using the contact details below.
Contact HR
Still have questions?
Your HR team is happy to walk you through the process.
- Email:
- [HR email address]
- Phone:
- [HR phone number]
- Hours:
- [Office hours]