Salary Increment Letter – Format, Meaning, Use, and Examples – The Ultimate Business System

Salary Increment Letter – Format, Meaning, Use, and Examples

May 5, 2022
HR Toolkit

Salary Increment is a common process that the employees expect every year after the completion of the financial month. However, some organizations give salary increments on the basis of the performance or the number of targets achieved in the given year.

Once the performance evaluation will be done, employers will be ready with all the data that determines what budget they need to allocate salary hikes and how much increment should be given to an individual employee. Undeniably, salary is the best motivational factor for the employees, therefore, employers need to be extra careful while doing the salary increments.

Providing the salary increment letter/emails can be the best way to inform the employees about their appraisals. Here in this blog, we will discuss what is a salary increment letter, when to use a salary increment letter, format, and examples.

Let’s get started!!

What is a Salary Increment Letter?

An increment letter is a letter that states the increment in the employee’s salary. This letter is provided to the employees after the completion of the financial month once after the performance evaluation is done.

In short, this letter is given whenever an employee performs well, at the beginning of the fiscal year, or according to the company’s policy. When an increment letter is given to an employee, it should congratulate the employee and should be written in a polite tone. To know how to draft an increment letter, refer to the further blog.

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When to Use an Increment Letter?

An employee is given a salary increment after his/her performance is evaluated. Performance appraisals and salary hike is given on the basis of employees’ hard work and punctuality towards the work. There are a few things that need to be taken care of while writing a salary increment letter. The very first thing is the tone. The tone of the letter should be polite and clear and remember not to complain. The language and tone should be in a way that you are happy with your employee’s increments.

Below you can find out the up-to-date letter format and the examples of the letter of increment.

Things to Be Included in Increment Letter

While you write the salary increment letter to your employees, the following are the things that you need to include in the letter:

  • The from address
  • Date
  • The To address
  • A subject that states the clear reason behind the letter
  • Salutation
  • Body of the letter
  • Closing Statement
  • Signature
  • Your Name
  • Designation

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Salary Increment Letter Format

Salary Increment Letter Format

Salary Increment Letter Example

Salary Increment Letter Example


A Letter of Increment is a letter that informs the employee about the increment in their salaries. This letter is issued to the employees after the completion of the financial month. Since increments are a great way to motivate your employees to work better towards their goals, increment letters are the best way to inform them about their increments. Writing these letters on a regular basis is a time-consuming task, therefore we’ve devised a method to assist you.

Ultimate Business Systems (UBS) is an HRMS software system that helps businesses create salary increment letters also known as pay increase letters and other HR-related letters like offer letters, appreciation letters, and relieving letters, among other things. Not only that, but we also offer a live editing feature that allows our clients to tailor HR letters to their exact requirements.

With capabilities including payroll management, HR letter generator, and employee onboarding, UBS is a one-stop shop for HRMS software in India. To organize a live demonstration of our product, please contact us.

Salary Increment Letter

Note: This letter will be useful to you! You can edit it, as your needs and requirements.

Salary Increment Letter Format 1

Salary Increment Letter Format

Salary Increment Letter Format 2

Salary Increment Letter Format

Salary Increment Letter Email Format

Salary Increment Letter Email Format

Alpesh Vaghasiya


The founder & CEO of Ultimate Business System Pvt. Ltd. (UBS), I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally. The core mission of UBS is Connecting people, Optimizing the process, Enhancing performance.

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