Salary Increment Letter - Formate, Meaning,
Use, and Examples
Salary Increment is a common process that the employees expect every year after the
completion of the financial month. However, some organizations give salary increments
on the basis of the performance or the number of targets achieved in the given year.
Once the performance evaluation will be done, employers will be ready with all the data
that determines what budget they need to allocate salary hikes and how much
increment should be given to an individual employee. Undeniably, salary is the best
motivational factor for the employees, therefore, employers need to be extra careful
while doing the salary increments.
Providing the salary increment letter/emails can be the best way to inform the
employees about their appraisals. Here in this blog, we will discuss what is a salary
increment letter, when to use a salary increment letter, format, and examples.
Let’s get started!!
What is a Salary Increment Letter?
Increment letter is a letter that states the increment in the employee’s salary. This letter
is provided to the employees after the completion of the financial month once after the
performance evaluation is done.
In short, this letter is given whenever an employee performs well, at the beginning of
the fiscal year, or according to the company’s policy. When an increment letter is given
to an employee, it should congratulate the employee and should be written in a polite
tone. To know how to draft an increment letter, refer to the further blog.
When to Use an Increment Letter?
An employee is given a salary increment after his/her performance is evaluated.
Performance appraisals and salary hike is given on the basis of employees’ hard work
and punctuality towards the work. There are a few things that need to be taken care of
while writing a salary increment letter. The very first thing is the tone. The tone of the
letter should be polite and clear and remember not to complain. The language and tone
should be in a way that you are happy with your employee’s increments.
Below you can find out the up-to-date letter format and the examples of the letter of
increment.
Things to Be Included in Increment Letter
While you write the salary increment letter to your employees, following are the things
that you need to include in the letter:
● The from address
● Date
● The To address
● A subject that states the clear reason behind the letter
● Salutation
● Body of the letter
● Closing Statement
● Signature
● Your Name
● Designation
Letter of Increment Format
Your Name
Designation
Company Name, Address, Pincode
Date
Receiver's Address
City, Pincode
Subject - Salary Increment
Dear [Employee’s Name],
We are glad to notify you that, following an evaluation of your performance, your
salary has been updated W.E.F [start date], and the new salary structure is as follows:
Previous Salary: [Rs. amount]
Increment: [Rs. amount]
New Salary: [Rs. amount]
Please contact the HR department for the remainder of the wage breakdown and
other terms and conditions.
We look forward to your vital contributions to the organization and wish you the best
of luck in your future endeavors.
As a show of acceptance, please sign the duplicate copy of this letter.
Signature
Designation
Your Name
Increment letter Example
Manasa Singh
HR Manager
B P L Technologies
Bandra
Mumbai – 400050
3rd January 2022
56/89, Green Park Lane
Bandra
Mumbai – 400050
We are glad to notify you that, following an evaluation of your performance, your
salary has been updated W.E.F 3rd November 2020, and the new salary structure is as
follows:
Previous Salary: 35000/-
Increment: 7000/-
New Salary: 42000/-
Please contact the HR department for the remainder of the wage breakdown and
other terms and conditions.
We look forward to your vital contributions to the organization and wish you the best
of luck in your future endeavors.
As a show of acceptance, please sign the duplicate copy of this letter.
Signature
HR Manager
Manasa Singh
Conclusion
A Letter of Increment is a letter that informs the employee about the increment in their
salaries. This letter is issued to the employees after the completion of the financial
month. Since increments are a great way to motivate your employees to work better
towards their goals, increment letters are the best way to inform them about their
increments. Writing these letters on a regular basis is a time-consuming task, therefore
we've devised a method to assist you.
Ultimate Business Systems (UBS) is an HRMS software system that helps businesses
create salary increment letters also known as pay increase letters and other HR-related
letters like offer letters, appreciation letters, and relieving letters, among other things.
Not only that, but we also offer a live editing feature that allows our clients to tailor HR
letters to their exact requirements.
With capabilities including payroll management, HR letter generator, and employee
onboarding, UBS is a one-stop-shop for HRMS software in India. To organize a live
demonstration of our product, please contact us.
Meta Description - Prepare the customized salary increment letters for your employees.
UBS is the best solution to generate the tailored increment letters with no cost.
Format 1
[Date]
[Name of the Employee]
[Designation]
[Employee Code]
Subject: Salary Increment letter
Dear [employee name],
We congratulate you for the completion of the [duration] in our organization, we are
glad to give a [mention increment in %] increment on your present CTC. As we saw
your performance data which was given by your Reporting manager as well as by your
Head of your department.
They both are very happy to see your performance in the past [duration] journey. Your
reconstructed salary will be <amount> per annum.
We want to show our gratitude for your hard work for the organization, and we hope
you will continue this growth journey with us.
Best wishes
[Your Name]
[Signature]
[Designation]
[Company Name]
Format 2
Date _________
Mr.________
Designation
Employee Code
Subject: Reward of Salary Increment on Good Performance
Dear,
Congratulations!
In recognition of your previous performance we are glad to inform you that the
company has decided to give you an increment of Rs _________/- and your
restructured salary shall be Rs _________-/ CTC per month will be __________.
The complete detail of your revised salary is highlighted in Annexure "A" of this letter.
We would like to take this opportunity to express our appreciation of your
contribution to the organization and hope that you will continue to strive for better
results.
We hope you will shoulder your new responsibility with full dedication and sincerity.
With best wishes,
Sincerely yours,
Company Name
Authorized Signatory
Format 3 - Email Template
From email -
To email -
CC -
Date -
Subject - Congratulations [Employee Name]!!
Dear [Employee Name],
As an appreciation for your performance in the last year, I am glad to inform you that
[Company Name] has decided to give you the salary increment of Rs. [amount] for
your dedication and contribution towards your organizational goals.
This well-deserved increment is the fruit of your dedication and hard work towards
your work. We always work to keep our deserving employees happy and satisfied. We
also believe that this increment will give you the reason to stay motivated towards
your work.
Congratulations and Thank You!!
Please reply to this email in order to show your acceptance of this offer.
Regards,
Your Name
Designation
Company Name
