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What is Appraisal? Appraisal Letter - Meaning with Sample Letter Format​

Appraisal Meaning

It is a formal Assessment or act of examining the performance and evaluates the qualities of someone or judge the strengths weakness on the basis of tasks performed. 

Appraisal Letter & its Uses

Appraisal letter is used to declare the result of the Performance Appraisal Process conducted by the HR Department.  It is issued for appreciating and motivating an employee hard word and performance and achievement during a calendar year.  The organization also extends its gratitude to those employees for their outstanding contribution in the growth of the company.

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Objective of Appraisal Letter

The objective of performance appraisal is to measure the evaluation of the performance or quality of a person or employee working in an organization. 

Appraisal also works as an opportunity to individual employee or any appraisee where they can display their work and get appraisal and identify the learning needs to improve skills and performance.

Appraisal of an employee can be done by having a meeting with the manager and discussing their development and feedback on their job performance, progress, objective and also work needs and expectation from the Manager. It is also noticed that organizations also encourages their employees to prepare for the appraisal interview by filling out various kind of appraisal forms. In appraisal, the Critical assessment is important which helps improve skill and performance of the employee. Formal appraisals happen once or twice in a year.

Appraisal Letter - Process & Format

The appraisal process is the method to review, evaluate and assess the performance of the individual employee. The appraisal method is typically followed to explore the work specifications, growth, and prospects, which further helps to evaluate the employee’s achievements and allows you to set further goals and targets to achieve them. Appraisal letter is the outcome of appraisal process which is followed by Management and HR person.

When to write Appraisal Letter?   

Appraisal Letter is mainly issued once or twice in a single financial year. It completely depends on company policy. Some companies give appraisal on half yearly basis, in that case, companies may issue Appraisal letter based on performance. Most companies gives appraisal annually.

Tips To write appraisal letter  

Appraisal Letter is written in various ways, but the matter remains same. It is a letter through which employer informs the employee about the work they have done. The appraisal letter helps to express their feedback of an employee.

The appraisal letter contains facts of the designation currently employee is working as it mentions the current salary and the increment the employee receives on the current salary.
It also mentions the bonus or any other reward received as per company allotment and scheme.
If there is a change in designation then the same is mentioned in it.
The effective date of the salary increment is also mentioned in the appraisal letter.

Click here to Learn and understand about:

  1. What is Performance Management       |       2.  What is Performance Appraisal

Find below various Appraisal Letter Sample Format for quick and easy uses:

Download Free PDF/DOC


Appraisal Letter Sample

Sample Template

Mr. Lalit Soni
Sales Manager
XYZ Pvt. Ltd. 
Date (Date of issuing the letter)
Nakul Shaurya
HR Manager
XYZ Pvt. Ltd
                                             Sub: Performance Appraisal


It is a great honour for me to write this appraisal letter to you. Your performance has been really commendable and with sheer dedication you have become an asset to the organization.
I proudly mention that company has decided to reward you with a raise in your salary by 25%. The salary breakup will be visible in portal, you can download it from the portal.  From 1st of April your salary will increase.
We wish you all the best and hope you will continue to work with the same dedication in future also
All the Best!
Yours Truly,




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Employee Appraisal Letter

Sample Letter

(Use Company's Letterhead)


Name of the Employee_________
Designation _________________
Dear . ____________,
The company (name of the company) went through a lot of growth and achievement last year. The future of the company would be very bright and we are happy to have you onboard.
We are happy with your performance and are equally pleased to share that you have been promoted to (Name of the position) _______________ with immediate effect.  Your new compensation structure will be as follows:
   Compensation Heads            Compensation(In INR)
Basic + D.A.                            :             
Conveyance Allowance           :                      
Medical Reimbursement         :                                    
Food Allowance                      :                         
Gift                                          :
Retirement Benefit                  :                       
Subtotal of Annual Salary       :                                      
Employer contribution to EPF :     
       Annual Total                       :
The raise in your salary would be applicable from (prescribed date) ____________. Your next compensation review will be in ________________.
We look forward to be associated with you in the future. Hope you will contribute even more.
Yours Sincerely,
Manager HR





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