Increment Letter

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. This kind of 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 Effective Warning Letter ?




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




  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.




 Sample Letter of Increment
Example Template


Company's Letterhead





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





 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. )

Complete Communication 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 Pvt. Ltd.


(Use Company Seal on Signature)



              Sample Letter of Increment
                     Example Template






Dear _______________

we have always been an exciting place to be at and each passing year has brought new milestones to cross. But looking forward. I have no doubt that this financial year will be even more exciting even more fun. Company Name________________ today is a collection of 5 fast growing marketplaces built on top of a large horizontal foundation. You have played an important role in helping build 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 you shall receive 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!










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