What is a salary increase letter? (And how to write one)
The salary adjustment letter is a formal communication regarding salary adjustments. It highlights the mutual investment in the employment relationship. Understanding the significance of a salary increment letter is essential for employers and employees. It ensures transparency and reflects mutual recognition of performance and commitment.
A salary increment letter is sometimes confused with a salary revision letter. A salary increment letter is what notifies an employee of an increase in their current salary. It reflects their contributions and performance. On the other hand, a salary revision letter outlines changes to the overall salary structure. This potentially affects multiple employees or positions within the organisation.
An employee's salary plays a crucial role in their motivation and job performance. Regular salary increments reflect an organisation's commitment to employee satisfaction and retention. It fosters a sense of appreciation and encourages employees to strive for excellence.
A salary increase letter works in two ways. An employer may send a salary increase (or increment) letter to inform an employee about a raise. Or you as an employee can 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. By articulating reasons for the salary increase request and outlining achievements and contributions, you can demonstrate your value to the organisation.
Following the advice in this article can help you create a compelling letter. Here is what we will cover:
- 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?
A salary increase letter is a formal communication used to notify an employee about a pay raise. Employers send this letter to provide a written record of the pay rise. This ensures both parties have a clear reference to avoid misunderstandings.
From an employee's perspective, a salary increment letter is a formal request for a pay increase. In this letter, you outline your achievements, contributions to the company, and any additional skills or responsibilities you have taken on. This information supports your request for higher compensation.
Timing your salary increment request
Timing is crucial when requesting a salary increment to increase your chances of success. Here are some important considerations:
Company's financial health
Evaluate the company's financial situation. If the company has had a successful and profitable year, or has recently secured a major client, investment, or partnership, your request for a pay raise is more likely to be well-received.
Alignment with performance review cycles
Timing your request to coincide with employee evaluation cycles can be beneficial. Asking for a salary increase right after receiving a positive performance review can significantly strengthen your case.
Following major achievements
Consider requesting a raise after major achievements. Completing a significant project or securing a big client showcases your contributions and justifies a raise, proving your ability to enhance the company's success.
By considering these factors, you can strategically time your salary increment request for maximum impact.
Preparing to write a salary increment letter
Here are tips for writing a convincing letter for a pay rise:
Research your worth Determine if your current pay is competitive by knowing the salary range for your position. This can help you decide on a reasonable salary increase. Use the Jobstreet salary research tool to gather accurate information.
Understand the employer's perspective
Many factors affect an employer's decision to increase your salary. The main ones are the company's budget and your performance. Look into these before writing your pay raise request letter. Understand the company's financial situation and your value to the organisation. This 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 and 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 reasons for the salary increase. Include 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.
Be specific about the raise amount. Clearly state the amount you are requesting to show that you have done your research and have a specific figure in mind.
Follow up after sending
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 is past the response given date to ensure your request is being considered.
How to write a letter requesting a salary increase
Here is 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
State the purpose of your letter. Include a summary of your accomplishments. You can also mention other information that strengthens your case for a salary increase.
Body
Support your request with details of your performance and accomplishments. Include concrete results and explain how you helped the organisation reach important goals. Provide measurable outcomes and data. State your current salary and the desired salary. Explain your reasoning for the increment. Highlight your commitment to the company and outline how you plan to contribute to its future growth.
Closing
Thank the recipient for their time. Express your willingness to discuss the matter further. Mention that you hope for a favourable response to your request.
Signature
Include a professional sign-off. It's common to use "Sincerely." Below this, add your full name and signature.
How to deliver a salary increase letter
Starting the conversation about a salary increase can be tricky. Begin by setting up a face-to-face meeting with your manager or supervisor to discuss your request. This approach can help both parties get on the same page.
What to prepare for the meeting
Prepare for the meeting by noting your 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. Be ready to discuss your career goals and how a raise can help you meet them.
How to present a strong case for a salary increase
Present a strong case by focusing on concrete achievements and measurable outcomes. Highlight how your work has directly contributed to the company's success. Use data and specific examples to back up your request.
How to start the conversation
Start the conversation by expressing your appreciation for your current role. Then, state your request for a salary increase clearly and confidently. Explain the reasons for your request, emphasizing your contributions and future goals.
Delivery methods
You can hand-deliver your salary review letter during the meeting or in a private setting. Alternatively, follow up with an official email and attach the letter.
Template for a follow-up email
Here is 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 have 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 are two examples:
Example 1
Subject: Follow-up on request for salary increase
Dear Mr. Chan,
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 have 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,
Fatimah Khan
Example 2
Subject: Follow-Up on Recent Salary Discussion
Dear Mr. Encik Rahman,
I hope you had a great weekend. Following our meeting on 1 April 2024, I am writing to provide additional details regarding my request for a salary increase.
Attached, you will find a comprehensive letter summarizing my achievements and the justification for the proposed raise.
I appreciate your time and am available to discuss this further at your convenience. Thank you for your attention to this matter.
Sincerely,
Nur Aisyah Binti Ahmad
Salary increase letter examples
Here are two pay raise letter samples for your reference.
Request letter for a performance-based raise
Adam Lim
No. 29, Jalan Pinang, Taman Likas
18500 Kota Bharu, Kelantan
[email protected]
9-6290 7711
25 April 2024
Mr Michael Tan
Manager
Intelligent Solutions
18th Floor, VanTech Building, Wangsa Maju
18500 Kota Bharu, Kelantan
Dear Mr Tan,
I am writing to formally request a salary increase. I have been with Intelligent Solutions 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 RM 3,500 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]
Adam Lim
Request letter for a salary increment to reflect market rate
Alia Ng
No. 29, Jalan Raja Chulan
Bukit Bintang
50200 Kuala Lumpur
[email protected]
3-6957 8851
12 April 2024
Sarah Lee
Manager
Future Tech Corporation
Level 5 XYZ Corporate Park
Jalan Ampang
50450 Kuala Lumpur
Dear Ms Lee,
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 RM 5,350 per month. Given that I currently earn RM4,800, I believe an increase to this amount would be appropriate.
My performance in the two years I have worked for Future Tech Corporation has been excellent. I have consistently received positive reviews and led projects contributing 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]
Alia Ng
Conclusion
When writing and sending a request letter for a salary increase, it's important to be professional and concise. Research the company's financial situation and your position's market rate. Be specific by mentioning your achievements and other information that supports your case. Time your request to improve your chances of success.
Get the salary increase you deserve with our salary negotiation tips and must-dos when asking for better pay. You can also follow our step-by-step guide to negotiating for a higher salary.
FAQs
Here are answers to questions about this topic:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
