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Free HR template

Salary increment letter format

Tell an employee about their raise in writing. Add the current CTC and the hike, and the new salary and the increase are worked out for you. Add a new designation to make it a promotion letter. It starts with a sample letter you can change. Download it as a Word or PDF file. Free, with no sign-up.

Filled in with an example. Change any field and the increment letter updates.

Your company

Shown under the company name at the top of the page.

Employee
Salary

₹6,00,000 (Six Lakh)

Signed by

Brightway Retail Pvt. Ltd.

4th Floor, Prestige Towers, MG Road

Bengaluru, Karnataka 560001

Date: 2 November 2026

To,

Priya Sharma

Employee ID: BW-1042

Store Manager

Subject: Salary revision

Dear Priya,

We are pleased to tell you that your salary has been revised, in recognition of your work and contribution.

Your annual cost to company (CTC) will be Rs. 6,60,000 (Rupees Six Lakh Sixty Thousand only) from 1 December 2026. Your current annual CTC is Rs. 6,00,000, so this is an increase of Rs. 60,000, or 10%.

All other terms of your employment stay the same. Please keep the details of this letter private.

Congratulations, and thank you for your work. We look forward to your continued growth with us.

Yours sincerely,

For Brightway Retail Pvt. Ltd.

Anita Rao

HR Manager

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What to put in an increment letter

Keep it to one page. The employee should be able to see the new salary and when it starts at a glance. Include:

  • The current and new annual CTC
  • The increase, in rupees and as a percentage
  • The date the new salary starts
  • The new designation, if it comes with a promotion
  • That all other terms stay the same

Increment letter or promotion letter

An increment letter gives a raise in the same role. A promotion letter gives a new designation, usually with a raise. Fill in "New designation" in the form and this letter covers both.

Work out the hike first

Not sure what the new CTC should be? The salary hike calculator works out the new salary from a hike %, or the hike % between two salaries.

Open the salary hike calculator

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FAQ

Questions about the salary increment letter generator

Is this free to use?
Yes. There is no sign-up and no limit. The document is made in your browser, so Goodfit never sees or stores what you type.
When should the new salary start?
Most companies start it on the first day of a month, often April after the yearly review. Put the date in "New salary from" and the letter states it.
Should the letter show the old salary?
This letter shows both, so the employee can see the increase in rupees and as a percentage. If you would rather not show the old salary, delete that sentence in the Word file.
Can I make a promotion letter?
Yes. Add the new designation. The subject line and the first paragraph then say the employee was promoted, with the new salary.
Do I need a new appointment letter after a raise?
No. The increment letter changes the salary and keeps the other terms of the appointment letter. Keep a signed copy in the employee’s file.

Free to start

Hear about problems before a resignation letter

Goodfit calls employees at the milestones you choose, like a month after a promotion, and asks how things are going. You get the reasons behind any problem, with the recording.

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