> ## Documentation Index
> Fetch the complete documentation index at: https://docs.encoreos.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Plan Merit Increase

> Plan and manage merit-based pay increases — review pending approvals, track increase percentages, and create new merit increase proposals.

The Plan Merit Increase page at `/hr/compensation/merit-increases/new` (and also `/hr/compensation/merit-increases`) is the hub for merit increase planning, showing pending approvals, all increases, and summary statistics.

## Overview

The page fetches all merit increases and a filtered set of `pending_approval` increases. Summary stat cards show counts of Pending, Approved, Applied, and Total Planned merit increases. A tabbed DataTable switches between **Pending** and **All** views. Columns include employee name/number, current salary, increase percentage (badged by severity), new salary, effective date, status badge, and row actions. A "New Merit Increase" button opens the `MeritIncreaseForm` dialog.

## Who it's for

Access follows your organization's role and module configuration. ## Before you start

* Employees and their current pay rates must be configured.
* Salary bands should be set up (at `/hr/compensation/salary-bands`) to provide context for increase percentages.

## Steps

**Create a merit increase**

1. Navigate to **HR → Compensation → Merit Increases** (`/hr/compensation/merit-increases`).
2. Click **New Merit Increase**.
3. Complete the form: select employee, enter increase percentage, set effective date.
4. Save — the increase appears in the list with `pending_approval` status.

**Approve a merit increase**

1. On the **Pending** tab, locate the increase.
2. Use the `MeritIncreaseApprovalActions` row controls to approve or reject.

**View all increases**

1. Click the **All** tab to see increases in all statuses.

## Key concepts

| Term                | Meaning                                                            |
| ------------------- | ------------------------------------------------------------------ |
| Increase Percentage | The percentage raise applied to the employee's current salary.     |
| `pending_approval`  | Increase has been proposed and is awaiting manager or HR approval. |
| `approved`          | Increase has been approved but not yet applied to pay records.     |
| `applied`           | Increase has been written to the employee's compensation record.   |

## Related

<Columns cols={2}>
  <Card title="Human Resources" icon="users" href="/hr/overview">
    Human Resources core overview.
  </Card>

  <Card title="Governance & parity" icon="scale-balanced" href="/governance/index" />
</Columns>

<Note>
  This page documents shipped product behavior. It is not medical, legal, or
  billing advice. Verify against your organization's policies and applicable
  regulations before using it for clinical, compliance, or billing decisions.
  Protected health information (PHI) shown in the product is governed by your
  tenant's access controls and is never exposed in this documentation.
</Note>

<Accordion title="Documentation sources">
  * src/routes/hr.tsx
  * src/cores/hr/compensation/pages/MeritIncreasePlanningPage.tsx
  * src/cores/hr/compensation/hooks/useMeritIncreaseList.ts
</Accordion>