How to Write a Salary Increase Letter in 2025
Use these 5 salary increase letter templates (from employer to employee) to save time.
In the world of work, one of the most anticipated moments for any employee is receiving a salary increase.
It's a sign of recognition for hard work, dedication, and growth in the company. But, how does this important news get communicated?
Enter the salary increase letter from employer to employee. This essential document not only delivers the exciting news but also sets the stage for a continued positive working relationship.
In this blog post, we'll dive into the ins and outs of crafting the perfect salary increase letter and provide templates you can use to send your next one today.
So, let's get started on making that pay raise announcement a memorable and meaningful experience for everyone involved.
Reasons For a Salary Increase
Everyone has a different career path. For this reason, salary adjustments can be made at varying times and also for varying reasons.
Below are some reasons for a salary increase:
- The end of a probationary period
- By request of the employee
- A promotion
- Taking on additional responsibilities
- Acquisition of new certifications
- To keep up with the cost of living
- To be paid a fair market value
Tips to Keep in Mind While Writing a Salary Increase Letter
When writing a salary increase letter as an employer, follow these key tips:
Express gratitude: Begin by sincerely thanking the employee for their hard work and contributions.
Provide specific reasons: Clearly state the reasons for the salary increase, referring to achievements or performance metrics that justify the raise.
Research market value: Ensure the proposed salary aligns with industry standards and market rates.
Highlight benefits: Emphasize how the increase reflects the employee's growth and career development, mentioning any additional perks or opportunities.
Discuss future potential: Illustrate opportunities for advancement and increased responsibilities within the organization.
Include supporting documentation: Attach relevant data, evaluations, or reports that support your decision.
End positively: Conclude the letter by expressing confidence in the employee's continued success and reiterating your appreciation.
Remember to maintain a professional and supportive tone throughout the letter. Openly communicate and address any concerns the employee may have. Crafting a well-written salary increase letter demonstrates your commitment to recognizing and rewarding talent within your organization.
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Salary Increase Letter Templates From Employer to Employee
End of Probationary Period
The following salary increase letter template can be used for employees who have successfully completed a probation period and are eligible for an increase in compensation.
End of probationary period
Dear {formtext: name=name; default=John; cols=10},
We are pleased to inform you that due to your successful completion of our company’s 45 days probationary period, you are now eligible for an increase in compensation.
Effective {formdate: LL}, your annual base salary will increase from {formtext: name=salary; default=$75,000; cols=10} to {formtext: name=salary2; default=$85,000; cols=10}. For a specific breakdown of your bi-monthly take-home pay please refer to your employee portal.
Congratulations on making a new home for yourself at ACME! As you have experienced, we have a selective hiring process and are pleased to have seen you rise to the challenge.
We look forward to sharing your continued success!
Sincerely,
_
Salary Increase After Promotion
Use the following template to confirm an increase of pay after a promotion.
Post promotion salary increase email
Dear {formtext: name=name; default=John; cols=10},
Congratulations on your recent promotion! As per your latest performance review on {formdate: LL; name=date2}, this letter serves as a confirmation of your pay increase based on your promotion from software engineer to Sr. software engineer.
As of {formdate: LL}, your annual pay will increase from {formtext: name=salary; default=$75,000; cols=10} to {formtext: name=salary2; default=$85,000; cols=10}.
Please check www.example.com/employee-portal for any questions regarding how your salary will be divided per pay period.
Your accomplishments as a software engineer include 105% sprint efficiencies, exceptional contributions to R&D initiatives for localization, and championing clean architecture within the VizOps team.
Moving forward as our new Sr. software engineer, your additional responsibilities will entail:
- Mentoring new batch of software engineers for clean architecture
- Lead migration for RES I, RES II, and RES III product suites to a newer modern framework
- Work closely with LOB Manager for risk mitigation
- Representing eAddress suite in the yearly RES Dev summit
We are confident that you will continue to be an integral part of ACME and we wish to extend our warmest congratulations on your new role!
Sincerely,
_
Approved Salary Increase Request
This template can be used to inform an employee that their salary increase request has been approved.
Salary increase request approved
Dear {formtext: name=name; default=John; cols=10},
Thank you for submitting a salary increase request. After reviewing your request, and as per our ongoing discussions, we are pleased to inform you that your salary increase has been approved!
We are glad to acknowledge your efforts and your latest achievements at ACME including your contribution to our highest grossing game.
Your talent and dedication at Router Games should be rewarded and we will be increasing your annual salary from {formtext: name=salary; default=$75,000; cols=10} to {formtext: name=salary2; default=$85,000; cols=10} effective {formdate: LL}.
Congratulations on your hard-earned success at ACME!
Sincerely,
_
Salary Increase Due to Cost of Living
The next template is a notification of salary increment due to a rise in the cost of living.
Cost of living salary increase email
Dear {formtext: name=name; default=John; cols=10},
We are pleased to inform you that effective {formdate: LL} your annual salary will increase from {formtext: name=salary; default=$75,000; cols=10} to {formtext: name=salary2; default=$85,000; cols=10}.
As a company, we understand that the rising cost of living in New York is an undue burden on our employees. We value the work you do for our company and feel it is our responsibility to periodically monitor changes in those costs. As per the company policy - www.example.com/company-policy, we’ve incremented your salary to reflect recent changes in the cost of living.
On behalf of ACME, thank you for your continued dedication and hard work.
Sincerely,
_
General Salary Increase Letter Template
This final template is a general salary increase letter that can be adapted for your company’s needs.
Generic salary increase email
Dear {formtext: name=name; default=John; cols=10},
This letter is to inform you that based on your performance review, you are now eligible for a salary increase.
As per the conversations with your manager, you have shown dedication and hard work in your position as {formtext: name=position; cols=9}. Due to your strong work ethic, high dependability, and exceeding yearly goals - we are pleased to inform you that your new annual base salary is now {formtext: name=salary; default=$85,000; cols=10} instead of your previous salary of {formtext: name=salary2; default=$75,000; cols=10}.
Congratulations on your accomplishments with ACME! We look forward to your future successes!
Sincerely,
_
More Templates
Check out our Common Work Emails and Gmail pages for more templates you can use today!
Conclusion
Increasing your employees' salaries is a natural part of running a business. However, if you have lots of employees and not a lot of time, sending out salary increase letters can take time.
Use Text Blaze to automate your common work emails, save time, boost your productivity, and focus on more important tasks.
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