Appraisal Letter Template

An appraisal letter, also called a performance review letter, is a formal document used to share the results of an employee’s performance evaluation.

It provides a written record of the review period, overall performance rating, and key feedback from managers. In many cases, it also includes details about salary adjustments, bonuses, or job title changes that result from the review.

An appraisal letter is important because it creates transparency between the employer and employee. By putting the review outcome in writing, it reduces the risk of misunderstandings and ensures that everyone is aligned on expectations.

It also plays a practical role for HR and payroll teams. The letter confirms effective dates for compensation changes and provides documentation for compliance purposes. At the same time, it sets out goals for the upcoming review cycle, giving employees a clear path for development.

A standard appraisal template usually includes:

• Employee’s name and ID
• Job title and department
• Review period (start and end dates)
• Overall performance rating
• Summary of achievements and areas for improvement
• Compensation outcome, if applicable
  • Merit increase amount or percent and effective date
  • Bonus amount and payment date
• Promotion or title change, if applicable
• Goals and development plan for the next period
• Next review date
• Acknowledgment and signature fields

No. While an appraisal letter records performance and outcomes, a promotion letter is issued specifically to confirm a new job title or role. An appraisal may result in a promotion, but the two serve different purposes.

Yes. Employees may request a follow-up discussion or submit a formal appeal, depending on company policy. If your organization allows for appeals, it’s helpful to include the relevant contact person and timeline in the letter.