Auto increment a value using cursor in SQLServer
I don't think a cursor is good solution to this as it would have to be running 24 / 7 and you would need to check it was running. A better solution would be to have a SQL Agent job that runs at midnight each night. The Agent job would call a stored procedure that checks the IsActive flag, LastUpdate field and NextUpdate field for each employee and then increments the mentioned values for each employee. 

The stored procedure could send an email after each run to show you how many records were updated. It could also incorporate error handling to alert you if there was a failure for some reason. This way you can be sure the process is running correctly.