HR Knowledge

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What is Increment Letter?

The increment letter is an official document given to the employee stating that the salary has been revised to a higher pay scale. The increment is given to the employee based on the performance or when the employee achieves the targets of a company or an organization.

What is Salary Increment Letter?

A salary hike letter is a formal document given by the employer to the employee stating that their salary is increased. It is also the other name of appraisal letter.

The increment letter is provided in the beginning of financial year or in six months. The increment given is based on the performance of the employee in an organization.

When the employee performs well the reward that is given to him is increment letter. Salary increments are always exciting. The salary increment letter is not only a reward to the employee but this letter also boosts the morale of the employee to perform well in their upcoming assignments.

The increment letter is also known as increase letter, increase request letter and raise request letter.

The salary increment letter is an official notification informing the employee how much their salary is increased. It is given by usually HR Manager or from the reporting manager of an employee.

What Should be Included in Salary Increment Letter – Increment Letter Format?

In drafting a salary increment letter following points should be taken into consideration:

  1. Name of the employee

  2. Designation of the employee

  3. Formal letter congratulating the employee for their good work

  4. Amended salary and structure

  5. New salary complete details

  6. The date and month from which the amended salary will be paid to the employee

  7. A thank you letter to the employee for the commendable performance.

Points To Be Considered While Writing The Salary Increment Letter

Following points should be taken into consideration while writing the salary increment letter:

  1. Congratulate the employee on increment

  2. There should be no spelling mistakes or any other errors

  3. The letter should be formal and precise

  4. The tone of the letter should be happy throughout

  5. Convey the reason why the employee got the raise clearly.

  6. Mention the increment amount or percentage in a numerical format.

  7. Wish the employee all the best for future endeavors.

Find below various Increment Letter Sample Template and example in word and PDF format available to download for quick uses.

Learn More : How To Write an effective Warning Letter ?


pdf word


Increment Letter Format – Sample Template


Name of the Employee:

Employee Code:

Sub : Salary Increment Letter

Dear (Name of the Employee)

Amidst outbreak of pandemic covid 19, this year has been a full of opportunities. Another fantastic year for us which was not possible without the support and contribution from all of you.

We are pleased to announce a salary increment effective from date (_________). Your compensation is revised to (_______) and your rating was “Excellent”. The new compensation structure would be effective from date (______).

The compensation is very confidential information and hence it should not be disclosed with anyone in the organization. Any discussion on this matter or disclosure of salary increment letter will be considered as breach of agreement by you, therefore maintain the confidentialities. 

All other terms and conditions of the employment will remain same.

With best wishes.

Thanking you

Yours truly

For Company Name


Manager Name & Designation



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pdf word


Letter of Increment on Performance – Sample Format



Name of the Employee


Employee Code

Sub: Salary Increment Letter

Dear (Mention the First name of Employee)

I would like to share that we have always been at a 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 five 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 (_____). Your performance has been wonderful.

In recognition of your performance, the management has decided to increase 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 (__________).  Variable Bonus pay – out will be governed as per the performance linked variable pay policy. All the other terms and conditions of your employment remains 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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pdf word



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 (Employee Name) 

During the year, 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 up continuous efforts to hire best talent and invest in human resources.

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. (Mention the figure In Word). The revised CTC is applicable from date (______)  The detailed remuneration structure is enclosed as annexure 1. Your next appraisal is now due in month (____).  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 the company.


Thanking you,

Your truly,


For XYZ Inc..




(Use Company Seal on Signature)




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pdf word


Sample Letter of Increment



Company's Letterhead



Employee Name

Employee Code:


Subject: Letter of Increment

Dear (Candidate Name)

We are pleased to inform you that owing to your good performance at your work place and job 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 dated (______)

Please note that your annual CTC w.e.f. date (________) will be Rs (mention salary) (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. We are sure that this will motivate you and you will strive to improve your performance in future also.                                                         

Yours faithfully, 

For (Company Name)


Name of the Manager




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pdf word



Salary Increment Request Letter



Name of the Employee

Employee Code

Dear Sir,

I have been working with your organization from past three years as a (Mention 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.

My salary is very low as 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 raise my salary as my present salary is very less to manage the expenditure due to increase in inflation.

I got an offer from (Company Name) and the pay is comparatively higher than what it is now over here. I am sharing the company details you can investigate the same. Please resolve my concern as soon as possible.

Many thanks to you. Expecting positive response from you.






Company Name



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pdf word



Increment Letter To Employee

Sample Letter



Name of the Employee


Employee Code


Subject :  Reward of Salary Increment on Good Performance



Congratulations !

In recognition of your performance we are glad to inform you that the company has decided to give you an increment of Rs ( mention amount) and your restructured salary shall be Rs (mention salary) 

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 for 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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