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Appraisal Letter

What is Appraisal? Appraisal meaning & definition 

An appraisal is a formal Assessment or act of examining the performance and evaluates the qualities of somebody or to judge the strengths weakness on the basis of task performed. 

Objective of Appraisal Letter 

The objective of appraisal is a professional examination or 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 them appraised and identify the learning needs in order to improve skill and performance.

Appraisal of an employee Job performance can be done by having a meeting with his/ her and discussing their development and feedback on their job performance, progress, objective and also work needs  and expectation from his or her Manager or employer.  It is also noticed that organizations are also encourages at many places to their employees to prepare for the appraisal interview by filling out various kind of appraisal form. 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

The appraisal process is the process to review, evaluate and assess the performance of the individual employee. The appraisal process is typically followed to explore the job 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 final 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 one financial year. It completely depends on company policy. Some companies do performance review on half yearly basis, in that case, companies may issue Appraisal letter based on performance. Mostly company provides Appraisal annually.

Tips To write appraisal letter 

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

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

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

Read more : How to write letter of Reduction of rank?




Employee Appraisal Letter

Sample Letter 

( Use Company's Letterhead )



Name of the Employee

Designation _____________

Dear . ____________,

Last year went with a lot of growth and achievements at Company name including (some growth/ achievement data). The future holds a lot of promise and we are happy to have you as part of our team.

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 come up in ________________.


We look forward to even greater contribution from you in the future

Yours Sincerely,

Manager HR





 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 privilege for me to write this letter to you. Your performance has been really commendable and with sheer dedication you have become an asset to the organization.


I am feeling very proud to 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.  Your increment will be effective from 1st of April.


We wish that you will continue to work with the same dedication in future also.

All the Best!

Yours Truly,






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