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I heard there is concept of PMR( present market rate ) which means your current package and exp is assessed at the time of appraisal by your manager and if it is already above that base figure , you will not be given any hike ,means 0 increment which is common in IBM for most of guys who join as laterals. Src : Read on Quora by ex IBM employee
And how is present market rate calculated??
I think through external consultancy they ll do survey , I am not really sure about that.