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What is Increment Letter?

Increment letter is the other name of appraisal letter which basically contains the salary increment done for the employee by the employer.

Increment letter is mainly provided in the beginning of the financial year or quarterly while achieving the targets as per the company policy. This letter is given to an employee when he is performing good and meeting his targets on time.

When a Increment letter is issued to an employee he is given a hike in his salary and if an employee is working in an organization and he is not given any hike in his salary from a long time then he can write a letter to his human resources department requesting for an increment and expressing his needs and efforts he is being putting in his service from the time he is working in the organization.

When to Use increment letter

An employee is given an increment after observing his recent performance, hard work and punctuality towards his work. Things which need to be taken care of while writing an increment letter is to be polite and keep things clear and do not complain , the language and format should be in a way that you are requesting for an increament.

Find below some various Increment Letter Sample template for example in word and pdf format available for download for quick uses:

Learn More : How To Write an effective Warning Letter ?

Download Free PDF/DOC


Sample Letter of Increment on Performance

Example Template




Name of the Employee

Employee Code


Sub: Salary Increment Letter on Performance


Dear (Mention the First name of Employee)

I would like to share that that we have always been at an very exciting place where each passing year has brought us some new milestones to achieve.   

Further to inform that according to the current market statistic our Company ( Mention Name ) is with the sales of (mention figure) stand amongst the 5 fast growing marketplaces built on in our country.  And looking forward, I have no doubt that coming financial year will be even more exciting and challenging for achieving the Top Rank in chart and will bring even more fun and success.

The Management has acknowledged that you have played an important role in helping  and building our company, and I would like to thank you for helping (Company Name) scale to where it has reached today.   I would also like to take this opportunity to congratulate you on your performance for the year 2017 – 18. Your performance has been wonderful.

In recognition of your performance, the management has decided increase in your Grade that will result in increment of your monthly and annual Pay.  You shall also be receiving performance linked Variable Bonus of Rs.________ For the year 2017 – 2018.  Variable Bonus pay – out will be governed as per the performance linked variable pay policy. All the other terms and conditions of your employment remain the same.

I take this opportunity to wish you success in your career with us and look forward to your continued contribution towards meeting our goals.

Wish you all the best!


Manager Name & Designation




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Salary Increase or Increment Letter from Employer

Sample Format for Example

(Should be used Company’s Letter or use official Email)





The Employee Name

(Employment Code No. )

Address, City, State and Code


Subject :  Salary Increment


Dear Mr.___ ( Employee Name) 

During the year, each of our business witnessed incredible growth which has contributed in building a sustainable and profitable Business model for years to come.  Our Company has made further investments in optimizing and strengthening our various business processes and to create robust foundation to meet up any risks and challenges we may face in the near future.   In addition, We are putting our continuous efforts to hire best talent and invest in human resources have further strengthened our aspirations to be the leader in our Business sector.

All these efforts which we have done in the last financial years have made us a Very Unique Company and helped us to build a very harmonious culture of transparency and brand building within the organisation. The skills and aptitude of the members of our family has made us confident that we will get more success for us in the years to come.

Further, keeping in view of your efforts, performance and contribution for our organisation. We  are pleased to inform you that the management has identified you and have decided to give an Increment in your annual cost to company which will be now revised to Rs. 00000000/- (Mention the figure In Word). The revised CTC is applicable from 1st April 2018.  The detailed remuneration structure is enclosed as annexure 1. Your next appraisal is now due in April 2019.  The salary details enclosed are strictly confidential and private and must not be disclosed and discussed to anybody.

We still have to cover long way and add many more milestones and I am sure, we will all achieve it with your continued support, dedication, teamwork, innovation and passion to work for this organisation.

We congratulate you and request you to please acknowledge and accept this increment letter of the revised Salary and terms by signing a duplicate copy of this letter and submit the same to our HR Department as a token of acceptance.

Wish you good luck and best of wishes and a long journey with (use your company Name)

Thanking you,

Your truly,

For XYZ Inc..



(Use Company Seal on Signature)




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Sample Letter of Increment

Example Template

Company's Letterhead


REF:__________                                                                                         DATE:_________



Employee Name

Employee Code: 9828



Subject: Letter of Increment


Dear (Candidate Name)

We are pleased to inform you that keeping in view of your good performance at your work place and role, the Management has taken a decision to give you a salary increment.

Consequently, your compensation has been revised and the new enhanced compensation will be effective from 1st April 2017.

Please note that your annual CTC w.e.f. April 01, 2017 will be Rs.9.25 lac pa.  (You can approach HR Department for detailed salary break-up and tax changes)

Further, you will also be eligible for the other benefits as per your grade of employees. 

We are sure that this will motivate you and you will strive to continuously improvement in your performance in future also.                                                         

Yours faithfully, 

For (Company Name)


Name of the Manager





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Request For Pay Raise or Salary Increment Letter

Sample Template


I have been working with your organization from past three years as a ____________ (DESIGNATION) with full dedication at work and I have completed all the targets and task within deadline and my attitude in dealing with colleagues and superiors was excellent.
As I am receiving a low payment and I got my last increment two years ago, I have requested for hike in my salary a lot of times but there was no response from your side.
I am asking for you to climb my pay as my present pay is low to keep up my family costs. I got an offer from __________(COMPANY NAME) and the pay is comparatively higher than what it is now. If you don't mind investigate this demand and resolve my concern as ahead of schedule as could reasonably be expected.
Much thanks to you and seeking after a positive reaction from you.


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Increment Letter To Employee

Sample Letter


                                                                                                                                Date _________



Employee Code


Subject :  Reward of Salary Increment on Good Performance



Congratulations !

In recognition of your previous performance we are glad to inform you that the company has decided to give you an increment of Rs _________/- and your restructured salary shall be Rs _________-/ CTC per month will be __________

The complete detail of your revised salary is highlighted in Annexure "A" of this letter.

We would like to take this opportunity to express our appreciation of your contribution to the organization and hope that you will continue to strive for better results. We hope you will shoulder your new responsibility with full dedication and sincerity.


With best wishes, 


Sincerely yours, 

Company Name



Authorized Signatory




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