Abstract: Employees will necessarily tend to make realistic and definite expectations on how much the salary will be increased as soon as they are informed with the raise signal. Whether this expectation is properly measured and satisfied, it has a series of broad influences on employee′s behavior, psychology and value equivalence perception. As a result, although 18 factors play a role in the formation of psychological expectations for employees′ pay rise, the psychological expectation of employees′ momentary increase in salary takes the level of the above pay rise as the main factor and the base of the expected increase in salary. The paper gets the inner and clear psychological expectations of the salary increase, by taking three factors, such as job performance, job level and external salary as the factors to make clear psychological correction to the base number and fuzzy correction of the raise base. The paper defines the formative mechanism of the enterprise employees′ expectation on the pay increases as Umbrella Model. This model vividly depicts the internal mechanism of the formation process of psychological expectations of employee′s pay rise, and explains the logical relationship between factor system and decision conclusion in the process, and explains the formation and importance of psychological expectations of salary increase from the perspective of more essential value equivalence, which is beneficial to guide the practice of pay increase more scientifically.

Key words: employees′ expectations on pay increase, mechanism of formation, umbrella model