The Pioneer Press's Mike Berardino wrote an interesting blog explaining a little bit of how the Twins determine the contracts of the players in their pre-arbitration years. It's very interesting:
Raises are doled out in $2,500 increments, and pure service time isn’t enough to move up the ladder. Production — and not just the September call-up variety — is required.
The blog also tells us how much various Twins players will make in 2013 if they're with the Twins.