Increment Letter Format | Free Download

Download the free template for the best salary increment letter to improve the quality of your interview process.

What is a Salary Increment Letter?

A salary increment letter is an official document given by the HR department or by the employer to the employee to notify them about the salary increment.

We know that there are many things that make people join a job, and salary is one the most basic expectations from any employment. When people are working at the same profile for a significant amount of time the salary increment is one of the best motivating factors to keep people working with the company for a longer period of time.

The salary increment letter from the employer is given to the employee on yearly basis as per the policies of the company, such as,

• when an employee completes a year working in the position
• at the end of the financial year
• after the exceptional performance of the employee
• in response to the salary increment request from the employee
• as part of the annual appraisal letter

When an employee is working for your company for a long time, getting a salary increment letter from you is expected. Every employee looks forward to getting an increment letter from the employer. Ideally, if you don’t want to lose your good employees, you should not wait for their salary increment request letter. Moreover, the HR department should be always quick to respond as soon as they receive a salary increment request letter from an employee.

Every employee likes to get a salary increment letter, as we all want to earn more and get a better lifestyle. It is a piece of good news and would like to use lines like ‘it is a delight to inform you that your salary has been incremented’. There is no issue in starting your increment letter format with that line, but you should keep the formal tone in mind for the rest of the letter.

Employees look forward to your increment letter for them and will be excited about it, but you need to keep in mind that the salary increment letter has to sound professional. Sometimes the employee ask for an increment or their reporting manager does. In such a case, you need to give the response appropriate to it.

How to Write a Salary Increment Letter?

Sometimes it can be confusing to what salary increment letter format you should follow and writing a salary increment letter. Here are a few guidelines to help you draft a good salary increment letter.

Personalize

In the beginning of the letter, it is essential to mention the name of the employee receiving the increment. Along with the name of your employee, you should also mention their employee ID and address as per the format of a formal increment letter. That is not just a part of the salary increment letter format, but also gives it a personalized touch.

Appraisal

As mentioned before, increment letters can also be part of the appraisal letter. Therefore, when you are providing the hike due to their performance, you should include it in the increment letter. Mention your appreciation with a sentence such as:

• ‘ We are glad to give you salary increment for your hard work in the company.’
• ‘Considering your performance, we are happy to offer you salary increment’

Redesignation

Sometimes it is possible that you have been observing the dedication and the performance of your employee for a significant period and want to reward them with a better designation. Often it is a case that the reporting manager of the employee request you to provide a promotion as a part of the appreciation. In these cases, mention their new designation in the increment letter.

Keeping them informed about their promotion will add to their happiness, and an employee will be motivated to perform even better in the future.

Date

When it comes to formal communication, dates are important. You need to mention the necessary dates related to their increment. This depends upon the letter sample or the format that you are following. For example,

Performance

If your salary increment letter format involves the factor of performance, you can mention the period with the starting and ending dates. Most companies do the increment on an annual basis, and some do it for quarters or consider performance on a particular project.

Promotion

In the case where you would like to inform them about the promotion along with their increment in the letter, you have to give them the date from which they will be working in their new position.

Reason

It seems reasonable and professional to mention the reason for the salary increment to the employee. As in case of the exceptional performance or when their superior ask for an increment for them or their promotion, it is a huge appreciation. Mentioning such a reason in your increment letter can act as a great motivation factor for them.

If you were directly involved in the process and well aware of their performance, it can be great to leave a comment on their performance that is very specific to add value to the letter of increment.

Salary Details

Salary increment implies new set of benefits as well as salary structure. It is no news that people are always curious about perks and the benefits they will be receiving. That makes it essential to mention the new salary break up and along with perks in a letter of increment or the employees will be approaching the HR department with these queries.

A Few Quick Tips On How to Write an Increment Letter Effectively?

Here are a few things to keep in mind while writing a salary increment letter to make it precise and informative.

• Stick to the important points and avoid mentioning unnecessary details.
• Increment letter is a formal communication, and you can stick to the formal language for the same reason.
• The increment letter samples should be simple and easy to understand. You don’t need to mention all the distantly related policies in it.
• Using an informal tone in the increment letters may spoil the company’s image for the employees and form an unprofessional impression.
• Ensure that your increment letter sample is free of grammatical errors. Nothing shouts ‘lack of professionalism’ than the errors related to the spelling and grammar.
• When it comes to formal communication, the shorter it is, the sweeter it will appear. Therefore, ensure that the increment letter samples you follow will explain all the necessary information in a short text.
• You can highlight or use bold letters to draw the attention of the employees toward the important points. There may be other terms and conditions you want them to be aware of as well.