What is a salary increase letter? (And how to write one)

An employee's salary can affect their morale and performance. Many organizations regularly increase their employees' salaries, sometimes to motivate people to work harder and improve retention.

An employer may send a salary increase (or increment) letter to inform an employee about a raise. Or an employee might send a letter or pay rise email to ask for higher pay. Sending a salary increment letter to your employer can show your initiative and investment in your career. Following the advice in this article can help you create a compelling letter.

• What is a salary increase letter?
• Timing your salary increment request
• Preparing to write a salary increment letter
• How to write a letter requesting a salary increase
• How to deliver a salary increase letter
• Salary increase letter examples
• Conclusion
• FAQs

What is a salary increase letter?

Employers often send a salary increment letter to inform employees about an increase in pay. This letter serves as a written record of the pay rise. Both parties may refer to it to verify information and avoid misunderstandings.

As an employee, you can send a salary increment letter as a formal request to increase your pay. It outlines your achievements and contributions to the company. It also provides other information that supports your request. This includes your enhanced skills or new job responsibilities you've taken on.

Another type of written pay notice to an employee is a salary revision letter. It is an adjustment of the employee's salary structure, which may include a change in bonuses and allowances or pay raises. Often, the employer initiates the salary revision.

Timing your salary increment request

It's important to time your request to increase your chances of success. Here are tips to follow:

• Look at the company's financial health. If it had a successful and profitable year, your boss may be more likely to grant your request for a pay raise. The same holds true if the company secures a new major client, investment, or partnership.
• Align your request with employee evaluation cycles. Asking for an increase after getting a positive performance review can strengthen your case.
• Ask for a pay increase after major achievements. Completing a successful project or securing a big client can justify a raise. These prove your ability to contribute to the company's success.

Preparing to write a salary increment letter

If you’re keen to request for a salary increase, here are tips for writing a convincing letter for a pay rise:

Research the salary for your position

Knowing the salary range for your position can help you determine if your current pay is competitive. It can also help you decide on a reasonable salary increase. Our salary research tool can help.

Understand the employer's perspective

Many factors affect an employer's decision to increase an employee's salary. The main ones are the company's budget and the employee's performance. Look into these before writing your pay raise request letter. They can help you determine how large a salary increase to ask for and when to make your appeal.

Create a draft of your letter

Follow these tips when creating the draft:

• Use professional language: Write in a respectful tone. Use words appropriate for business communications.
• Be positive: Focus on your achievements and contributions. Avoid mentioning the salaries of other employees.
• Provide important details: Specify your reasonings for the salary increase. Give details about your additional responsibilities, excellent performance, or newly acquired skills.
• Set a realistic goal: Keep within the salary range of your position and industry. Mention that you're open to negotiating and discussing the matter further.
• Follow up on your request: If you asked for an increase in a one-on-one meeting, send an email afterwards to confirm the details of your request. Follow up after one to two weeks or if it's past the given response date.

How to write a letter requesting a salary increase

Here's a breakdown of the letter's basic parts and what to include in each one:

Heading

Include your full name, address, and contact information. Indicate the date you wrote the letter. Below, add the recipient's name, position, and the company name and address.

Greeting

Address the reader in a formal way. You can begin with "Dear" and follow it with "Mr" or "Ms" and their last name. If you know the person's title, you may use it.

Introduction

Indicate the purpose of your letter. Include a summary of your accomplishments. You can also mention other information that strengthens your case.

Body

Support your appeal with details of your performance and accomplishments. Include concrete results, and explain how you helped the organization reach important goals. State your current and desired level of pay. Express your commitment to the company. Tell how you plan to contribute to its growth.

Closing

Thank the person for their time. Say you're willing to talk about the matter further. You can also mention that you're hoping for a favorable response to your request.

Signature

Include a professional sign-off. It's common to use "Sincerely". Under this, add your full name and signature.

How to deliver a salary increase letter

Starting the conversation about salary can be tricky. Get the ball rolling by setting up a face-to-face meeting with your manager or supervisor to talk about your request for an increase. This can help both parties get on the same page.

Prepare for the meeting by noting the accomplishments, contributions, and skills you want to highlight. Predict possible questions and think of answers. Your boss may ask for specific examples to support your request. You may have to discuss your career goals and how a raise can help you meet them.

You can hand-deliver your salary review letter during the meeting or in a private setting. Or you can follow up with an official email and attach the letter.

Template for a follow-up email

Here's a simple template you can follow:

Subject line: Follow-up on request for salary increase  

Dear [Name of manager/supervisor],

I wanted to express my gratitude for the opportunity to talk about my salary increase request with you on [date]. Your insights during our conversation were invaluable.

Per our discussion, I've attached my formal request letter for your review. Please let me know if you have any questions or require additional information.

Thank you once again for your time and consideration. I eagerly await your feedback.

Sincerely,

[Your name]

Follow-up email example

You can use the template above without any changes. You can also make it more personal. Add a few sentences about your discussion. Or restate the reasons you deserve a raise. Here's a sample letter:

Subject line: Follow-up on request for salary increase

Dear Ms Santos,

I want to express my heartfelt gratitude for the chance to meet and discuss my salary increase request with you on 29 March 2024. I truly appreciate your thoughtful insights and the genuine interest you showed in my professional growth during our meeting.

Per our conversation, I've attached my formal request letter for your review. Please let me know if you have any questions or require additional information. Your guidance and support throughout this process mean a great deal to me.

Thank you once again for your time and consideration. I eagerly await your feedback.

Sincerely,

Juan dela Cruz

Salary increase letter examples

Here are two pay raise letter samples for your reference.

Request letter for a performance-based raise

Juan dela Cruz

123 Mabini Street

San Antonio Village

Makati City

Metro Manila 1234

Philippines

[email protected]

+639171234567

25 April 2024

Ms. Maria Santos

ABC Corporation

456 Ayala Avenue

Makati City

Metro Manila

1234 Philippines

Dear Ms. Santos,

I am writing to formally request a salary increase. I have been with ABC Corporation for two years and have consistently exceeded expectations in my role as a programmer. 

During this period, I have taken on additional responsibilities. These include training junior programmers and serving as a technical consultant for other departments. I have also spearheaded projects that have contributed to the company's growth. Among these are replacing our outdated legacy system and automating our data entry process. 

I believe that my performance justifies a 10% increase from my current salary of PHP30,000 per month. I am committed to this company and look forward to continuing to grow with it. 

Thank you for your time and consideration. I am available to discuss this further at your convenience. 

Sincerely,

[Signature]

Juan dela Cruz

Request letter for a salary increment to reflect market rate

Juan dela Cruz

123 Mabini Street

San Antonio Village

Makati City

Metro Manila 1234

Philippines

[email protected]

+639171234567

25 April 2024

Ms. Maria Santos

ABC Corporation

456 Ayala Avenue

Makati City

Metro Manila

1234 Philippines

Dear Ms Santos,

I am writing to request a salary increment for my position as a product designer to reflect the current market rate and my performance.

I have researched the salary for positions like mine, and the average rate is PHP80,000 per month. Given that I currently earn PHP50,000, I believe an increase to this amount would be appropriate. 

My performance in the two years I have worked for ABC Corporation has been excellent. I have consistently received positive reviews and led projects that have contributed to the company's success. These include the development of our latest product, InnovateX, which was a nominee for the Best New Product award in the recent Digital Marketing Summit.

Given the above, I believe I deserve an increase in my salary. I am fully committed to the company and its continued success.

Thank you for your time and consideration. I look forward to hearing from you soon. I am available to discuss this further at your convenience.

Best regards,

[Signature]

Juan dela Cruz

Conclusion

When writing and sending a salary increase letter, it's important to be professional and concise. Conduct research on the company's financial situation and your position's market rate. Be specific by mentioning your achievements and other information that supports your case. Finally, time your request to improve your chances of success. 

FAQs

Here are answers to questions about this topic.

1. What is the difference between a salary increment letter and a salary revision letter?
   ⁠A salary increment letter is a request for a pay raise. It may also be an employer's notice to the employee that their salary is increasing. A salary revision letter details changes to the salary structure. This covers an employee's salary and other benefits, such as bonuses.
2. When is the best time to request a salary increment?
   ⁠One of the best times to request a raise is after a positive performance evaluation or major achievement. Another is when the company is doing well.
3. How should I research my worth before writing a salary increment letter?
   ⁠Go to our career advice section and find out more about your position. This includes the average salary for your job and other information that can help you determine your worth.
4. What are some tips for drafting an effective salary increment letter?
   ⁠Maintain a professional and positive tone. Be specific in your reasons for asking for a raise and realistic in the increment you want. Thank the reader for their time, and express your openness to negotiation.
5. How can I make my salary increment letter specific and professional?
   ⁠Provide details about your successes and contributions to the company to back up your request. Specify your current and desired salary. Use formal language, address the recipient by name, and sign your letter.
6. What information should I include in the body of my salary increment letter?
   ⁠Include reasons for asking for a pay rise in the letter. Highlight your performance, new skills you've acquired, and additional responsibilities you've taken on. Mention your commitment to the company in this part of the letter.
7. How should I follow up after sending my salary increment request?
   ⁠Send a polite email to ask about the status of your request after a week or two. Keep it brief and professional.