Salary Increment Letter Template

A salary increment letter is a formal document issued by an employer to notify an employee of an increase in their salary. It typically includes the new salary amount, the effective date of the change, and a brief note of appreciation for the employee’s performance and contributions.

Salary increment letters are usually issued after performance reviews, promotions, or as a recognition of outstanding work.

A structured salary increment letter helps promote professionalism, transparency, and trust between the employer and employee. Key benefits include:

• Clear documentation: Clearly states the revised salary and effective date, ensuring no confusion about the change.
• Employee recognition: Formally acknowledges the employee’s contributions and value to the company.
• HR Recordkeeping: Provides official documentation for payroll and internal records.
• Positive engagement: Enhances employee morale and motivation through recognition and clear communication.

A standard salary increment letter typically includes the following:

• Company letterhead (if applicable)
• Date of issuance
• Full name of the employee
• Employee’s current position and department
• Statement of the salary increase
• Updated salary amount and the date it takes effect
• Appreciation message for the employee’s work and contributions.

In most cases, when an employee is promoted, their new salary is outlined directly in the promotion letter. However, some companies choose to issue a separate salary increment letter as an attachment or supporting document for clarity and documentation purposes.