Salary increment letter to employee format in word

hands holding us dollar bills

what is an increment letter?

An increment letter, as the name suggests, is a letter informing an employee of a pay raise following a comprehensive appraisal process. Employers typically issue a letter of increment/appraisal/letter of raise to deserving employees once a year after a thorough evaluation of past performance. In this article, you’ll learn how to write a salary increment letter and download it in word and pdf format.

Performance appraisal, often regarded as the most crucial aspect of employee engagement activities, provides an opportunity to assess, evaluate, and identify team members who are performing well and those who are not.

Read more: how to write a recommendation letter for an employee

How to write a salary increment letter?

As previously stated, the pay raise letter is an important HR document that must be treated as such. Here’s a detailed guide to writing an increment letter.

Before writing a salary increment letter to an employee, consider the following points.

  1. Use a business format: A salary hike letter, like any other business letter, must adhere to the elements of the traditional business letter format.
  2. Use the letterhead: An salary increase letter written on a blank sheet of paper has no legal standing. Furthermore, other employers may not regard it as a legitimate document. If you are issuing an increment letter, it must be done solely on the company letterhead.
  3. Addressee: It is critical that you get all of the addressee’s information correct, including full name, designation, department, pay grade, employee code, address, location, and so on.
  4. Provide ample information: The letter must include all necessary information, such as revised salary details, salary breakdown, bonus, taxes, and other statutory deductions, as well as information on any or all changes in roles and responsibilities.
  5. sign/stamp: To provide the necessary legitimacy, the letter must be duly stamped and signed by the appropriate authorities.
  6. Proofread: When you’re finished writing the letter, double-check it for spelling and grammar errors.

Salary Increment Letter Format For Employee Sample #1

Mr/ Ms. ____________




Dear Mr./ Ms. _____________,

Consequent to the review of your performance during the period April 2021 – March 2022, we are pleased to inform you that your services are being confirmed and your salary is being increased as follows, effective August 1, 2021.

Salary breakup:

Your appointment’s other terms and conditions remain unchanged.

We look forward to your valuable contributions and wish you the best of luck in your future career with the organisation.

Please sign the duplicate copy of this letter as a token of acceptance of the same.

For ABC Limited

HR Manager

Salary Increment Letter Format For Employee Sample #2


Name of the employee

Company name.

Sub: Increment Letter

Dear MR. / Ms.

We congratulate you for your hard work, enthusiasm, dedication, and continuous effort in meeting the organization’s objective.

On reviewing your performance for the year ……., we are glad to announce an increment of Rs………. (Rs. in words) on your existing salary(Rs………..) with effect from dd/mm/yyyy.

We expect you to keep up your performance in the years to come and grow with the organization.

please sign and return the duplicate copy in token of your acceptance, for your records.

Wish you all the best.

Managing Director.