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  • Introduction

Salary increment is one of the most exciting news for every employee of an organization. Be it in a small scale organization or a large scale organization, each and every employee feel excited after learning that their salary is increase. One of the major reasons why companies increase their employees’ salary is to acknowledge their employees’ hard work. Another major factor that comes into play is their employees’ promotion. Salary is usually increased when the employee gets promoted to another post or a higher rank.

In such cases many organizations try to give this news in a very formal manner. For this they make a document known as the salary increment letter. A salary increment letter is a written document that states that an employees’ salary is increased giving full details about the new salary structure.

In this article we would learn more about salary increment letter and how it can be written by the companies or organizations.

  • What is a salary increment letter?

It has various names. A salary increment letter is also known as the increase letter, raise request letter or increase request letter. A salary increment letter is a written document or a letter that is given by the owner or the senior of the company or the organization to the employees. This letter infroms the employee about their increase in the salary. It is an official record. A salary increment letter is an official letter stating about how much their salary has been increased and why it is being increased.

  • Why a salary increment letter is important?

Although a salary increment letter seems to be very normal letter addressing to the employee, it has its own set of importance as well. One of the huge importances that this letter has is that it has the capability of motivating the employees.

It is a known fact that everybody gets excited when they receive the news that their salary is increased or there is a hike in their salary. There may be several reasons for this hike in salary. Firstly, salary is increased with promotion. Secondly, it is a way of the company showing its gratitude towards the employee.

There are many employees who work very hard and genuinely think for the success of the company or the organization from the core of their hearts. An increase in the salary is the company way of showing that they value the honesty and dedication of the employee.

This simple salary increment letter can boost the morale of the employees. This can motivate them to do more work with much more efficiency such that they could also get the benefit of increased salary. By getting this letter employees feel much more confident and do their work with sincerity.


  • How should we write a salary increment letter?

Though it seems to be a normal letter addressing to an employee, there are certain things that has to be kept in mind while writing a salary increment letter for a particular employee. Since a salary increment letter is an official notification, it is important to know what should be added and what not to be added in the letter.

Many organizations do not know what to include in the letter. Worry not, because in this article we would tell you about some of the things that you can add in your salary increment letter. Listed below are few of them that you could add in your salary increment letter:

  1. Name and designation of the employee:

This is common and known point to note down. It is very important to write down the name of the employee and do not forget to mention their rank or designation as well.


  1. Congratulatory message:

Write a congratulatory message for the employee congratulating them for their increased salary. A short example could be “we are pleased to inform you that you have been recognized for your efforts and you have been awarded with an increased salary of —–. We congratulate you and we hope you would keep up the good work”.


  1. Mention ‘why’:

Explain in detail about why the particular employee is been awarded with an increased salary. Give the minute details. Explain if it is for his good work or it is for his promotion. Explaining the details about why they are receiving the increased salary would give them the idea of how the company praises their good employees. This would also make the other employees to work with much more efficiency and be much more productive to gain such kind of benefits from the company or organization.


  1. Mention the salary details:

The salary increment letter should contain all the details, like how much is the current salary and how much it is raised by. The salary increment letter should contain the entire details of the salary before and after the increment imposed.


  1. Mention of the new salary imposition:

This is a very important thing to note down. Do not forget to mention the date or the month from which the new salary would be given to the employee. This would give the employees idea about when they are going to get paid the new salary. This would give them the idea from which month they would be getting their new salary.


  1. Thank them:

Last but not the least do not forget to thank them for the good work that they did for your company or the organization. Thank them for the hard work that they did for your company. Thank them for the efforts and the time that they had spent for working towards the success of the company. It is these small gestures that make the employees feel valued and motivated.


  • Few extra points that needed to be taken care of while writing a salary increment letter for your employee

Apart from the above mentioned points there are few extra points that one should take care of while writing a salary increment letter for his / her employee. These are listed as below:


  1. Have a discussion with the employees:

A good and honest company or an organization is always transparent with their employees. So before moving on with further proceeding and formalities, you as the manager, should sit down and have a good discussion about the salary increment with the employee who is being awarded. Try to tell him honestly why he is receiving this gift. Try to solve his / her query about the new increased salary then and there and then move for further proceedings and official formalities.


  1. Set the tone:

While writing a salary increment letter it is very important to set the tone. It is usually suggested to set a happy tone for the letter since this is a very exciting news for the employee. Since this is a very happy moment for the employee, it is necessary to hype his / her happiness. Therefore it is suggested to set the tone of the letter to happy. Also, it is very important to maintain that happy tone throughout the time. Sometimes it may happen that while writing the letter we tune in the seriousness. So try to set and maintain the happy tone throughout the letter to uplift the spirits of the employee.


  1. Congratulatory message:

Though some might ignore this point, but it is very important to congratulate someone. This would help in maintaining the tone as well as hyping the employee. This would motivate the employee and make their spirits high.


  1. Short, simple and sweet:

Try to keep the letter short, sweet and to the point. Often while writing a letter we get side tracked. Since this is an official notification, it is generally perceived to be short, sweet and simple. Make all the points precise and to the points.


  1. Message should be conveyed properly:

The salary increment letter should convey the message properly to the employee. Apart from giving the new salary details, explain why he / she is receiving it in the first place. Explain them about their contributions towards the company or organization that led to their increment in salary. Explain with honesty, sincerity and with full details why you as a company or an organization thought of giving them this kind of benefit. The salary increment should not only tell them about how the salary is increased but also why the salary is increased. By telling them you are indirectly giving other employees the idea how they should do their works to get such benefits.


  1. Grammatical errors should be avoided:

While writing the salary increment letter, grammatical errors should be avoided at all costs. Salary increment letter is a very official document. So it should be written and documented in a proper manner. Grammatical and spelling errors give off a bad impression on others. To avoid this, it is often suggested to write properly and check everything again and again.


  1. Details of the salary should be given properly:

Sometimes while writing a salary increment letter, managers forget to tell in full details about their salary structure. This causes confusion and tension in the company or the organization. To avoid this situation it is necessary to mention the entire structure of the new increased salary properly. It is also better to mention the new salary structure against the old salary structure to give them a clear idea about the entire process.


  1. Wishing them good luck:

It is better to end the letter with a bright optimistic message. Wish them good luck for future and motivate them to work with much more enthusiasm and zeal. The letter should end on a positive note that when the employee completes reading it, he / she will be totally motivated to do more work.


  1. Motivating for future endeavors:

The letter can also contain message to boost up the spirits of the employee. This could be in the form of a motivating quote or phrase. Also if need then you can also mention about the future plans for th company. this would make the employees work more for the company with renewed spirits.



Salary increment is definitely one of the most happening things in a professional life. It is one of the most excited things to be happening to the employees of any company or organization. Many employees get a raised salary because of their excellent performance. Some even get raised salary due to their promotion which is obvious. Companies often give a raise increment to those who show utter dedication and sincerity to the company. Increment in the salary is a way of showing the company’s gratitude to the employee for their efforts.

To convey this increment in salary, companies often do this in a very formal manner. They write a letter known as salary increment letter and send it to the particular employee.

Salary increment letter is an official document that gives details about the new salary structure. While writing a salary increment letter it is very important to keep some things in mind. Few of these include giving minute details about the salary structure. The owner or the senior should also mention the details why the employee of getting a raise in their salary. The letter should be set in a happy tone, since this is a very exciting news for the employee. Also the letter should be short sweet and to the point.

Apart from all these points, one should also remember to give a congratulatory and a well wishing message. This would make the employees motivated and level up their spirits.

Before moving on with further formal proceedings, it is necessary to have a discussion first with the employee making him / her understand about the new salary structure and why they are getting it. It is often advised to have a one on one discussion with the manager or the HR of the company. These kinds of discussion would help the HR to solve the query of the individual then and there itself.

So this was all about the salary increment letter. Hope this helped you. stay tuned for more such contents.





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