What is the ideal increment percentage to be given for a service / product based ( 12yr young) company for this financial year? Company is planning to give increment only for selective employee's (maybe 7) considering the business condition. Idea is to ensure that we are able to retain existing employees so no termination is carried out.

Considering its only for a specific set of people, I am considering that these are exceptional performers who you do not want to lose. 10%-15% will be a good number. You may want to retain some amount for people who will themselves put down the paper considering they were not given an increment this year.

Thank you @Rounak Khandelwal. Idea is to carry it out discreetly ofcourse, so as to not to disturb other employees.

@Rounak Khandelwal try to assess the salary with the competitors or industry standards. You can use 6figr or payscale to log in and find the salaries as per the profiles or industry reports published for your sector. If you think, you are 90% above most of the companies in your industry then you need not worry with employees motivation. Rather than giving increments for some employees go with retaining bonus. if they stay for a year or more you can pay the amount. So that the morale is not distributed.