31/July/07

To:
Heads of Offices, HR Manager, Admin & Compliance Manger, Staff Development
Manager, Program Managers, Finance Director
From: Nigel Pont
Please find below a description of how and why salaries may be raised. If you have any
question please contact Wahidullah Murady or Syed Muzaffar
Salary increases are awarded in the following situations:
1.
2.
3.
4.
1.

Annual evaluation (once a year) upon the anniversary of hire.

Cost Of Living Allowance (COLA) will be reviewed in July each year
Change of title and Position Description
Change in salary scale based on market survey
Annual Evaluations:

1.1 Merit increases awarded at an annual evaluation for the year 2006-2007 will not exceed
4%. They will be based on an individuals annual evaluation. Surveys amongst other
NGOs showed that Mercy Corps is in average range for merit increases.
1.2 Increment for merit will solely depend on the agreement between the supervisor and the
supervisee. This will be reflected on the IOP signed by the employee, Supervisor and the
line manager/supervisor.
1.3 Salary raises that are associated with changes in job title or position will result in the
performance review cycle and related merit based salary increment changing to the date
of the change in position. In case there is a change in either the job title or position
description with out any change in the salary level, will have no impact in the merit
increase cycle and it will remain unchanged.
1.4 This increment will not apply to staff members whose probationary periods do not end
before July 1, 2007.
2. Cost Of Living Allowance (COLA)
2.1 For 2006-2007 a standard cost of living adjustment (COLA) will be applied to all fulltime and part-time employees who have successfully finished their probationary period as
follows:
a. For the staff members in Tier 1, and Level 1, the COLA is 4%.

Mercy Corps Afghanistan - Salary and Increment Guidance sheet

b. For the staff members in Level 2 and 3, the COLA is 6%

c. For the staff members in Level 4 and 5, the COLA is 8%
d. For the staff members in Level 5 and 6, the COLA is 10%
2.2 This increment will not apply to staff members whose probationary periods do not end
before July 1, 2007.
3. Change in Position Description:
An employee can be awarded an increase in salary when changing positions within the
organization with a change in title and position description. The salary assigned with the
new post should be in accordance with the approved salary scale. Mercy Corps Afghanistan
does not make make salary adjustments at the end of the probationary period. Under
exceptional circumstance, the Country Director may authorize minor salary adjustment at the
end of probationary period for outstanding performers.
4. Change in salary scale based on market survey
MC HR has recently reviewed the salary scale for Mercy Corps Afghanistan and made
necessary adjustment to the salary scale together with the program/project managers. This
process will be undertaken regularly to ensure that we are paying market rates for qualified
staff. If there are changes to the salary scale, there may be adjustments to existing staff
salaries which are significantly different to the revised scale.

Salary Scale
A salary scale is a matrix of grades and steps.
Position titles are grouped into different salary grades. Usually, differences in salaries
between the grades reflect the educational requirements, responsibilities and experience
required for a certain position.
Steps indicate average increments of a salary - reflecting experience and years of work.
Steps in Salary Scale do not reflect either the annual increment or the cost of living.
Notes:
A starting salary offered to a new employee must coincide with the amount indicated in
the salary scale for that particular grade/position.
If an individual has significant experience, he/she may be offered a salary at a higher
step, based upon his/her years of experience. at the discretion of the Project Manager,
HR Manager and the Head of Office, with careful consideration of the budget and other
staff of the same title/responsibility.

Mercy Corps Afghanistan - Salary and Increment Guidance sheet

Project Managers should consult the salary scale or HR manager when budgeting staffing
costs for a new proposal.
When determining amounts for salaries in project budgets, a buffer amount should always
be calculated in. An additional 25% should be allocated for additional expenses such as
raises, advertising fees and severance pay.
While the grades and amounts demonstrated on the salary scales will be based on the
local market value of specific positions, all efforts will be made to keep them uniform
throughout the country. MC offices will encourage salary surveys with other INGOs and
other comparable organizations in their area. If required, the salary scale will be adjusted
to keep MC consistent with market rates.
HR Officers or manager will coordinate and share updates to the salary scale between
MC Afghanistan field offices.
Approved by
Nigel Pont
Country Director
Mercy Corps Afghanistan

Mercy Corps Afghanistan - Salary and Increment Guidance sheet