Salary Increase Letter Template

Create a professional salary increase letter that clearly communicates compensation changes, maintains positive employee relations, and documents important details for HR records.

1 / 2

Salary Increase Letter Template

A salary increase letter is a formal document that communicates changes in an employee's compensation. This professional template helps employers properly document and communicate salary adjustments while maintaining positive employee relations.

What This Template Is For

This template is designed for HR professionals and managers who need to formally communicate salary increases to employees. It provides a structured format that includes all essential information while maintaining a professional and appreciative tone. The template ensures consistency in compensation communications and creates an official record of salary changes.

When To Use This Template

Use this template when:

  • Implementing annual salary reviews
  • Awarding performance-based raises
  • Adjusting compensation for promoted employees
  • Providing market-based salary corrections
  • Documenting merit increases

How To Customize It

Follow these steps to customize your salary increase letter:

  1. Insert the employee's name and current position
  2. Include the current salary amount
  3. Specify the increase percentage or amount
  4. State the new total salary
  5. Add the effective date of the increase
  6. Include any specific achievements or reasons for the raise
  7. Add any changes to benefits or other compensation
  8. Review for accuracy and professional tone

Common Use Cases

  • Annual performance reviews
  • Promotion-related increases
  • Merit-based raises
  • Cost of living adjustments
  • Market rate corrections

Best Practices

  • Be clear and specific about numerical details
  • Maintain a professional yet positive tone
  • Include all relevant dates and figures
  • Acknowledge employee contributions
  • Keep a copy for HR records
  • Proofread carefully for accuracy

Template Variations

Different versions are available for:

  • Performance-based increases
  • Promotion-related raises
  • Cost of living adjustments
  • Market rate corrections

Success Stories

HR managers report improved employee satisfaction and clearer communication when using this structured template. Companies note fewer questions and concerns from employees about salary adjustments when using this format.

Frequently Asked Questions

What should I include in a salary increase letter?

Include the employee's current salary, increase amount, new salary, effective date, and reason for the increase.

When should I send a salary increase letter?

Send the letter at least one week before the effective date of the increase, allowing time for questions and processing.

Should I mention performance in the letter?

Yes, if the increase is performance-based, briefly mention specific achievements or contributions that led to the raise.

Do I need to keep a copy of the letter?

Yes, always keep a signed copy in the employee's personnel file for record-keeping purposes.

Should the letter be signed?

Yes, the letter should be signed by the appropriate authority, typically the direct manager or HR representative.
Customize Your Salary Increase Letter

Adapt this template with specific details about the salary increase