How To Write An Increment Salary Letter (With Template)
Updated 29 August 2022
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Compensation is a major factor of motivation for employees to work in any organisation. Where the salary does not meet employee expectations, it may be common to write a letter requesting a pay raise or promotion. There are a few things to remember before you write to your employer for an increment to ensure that your application is successful. In this article, we discuss how to write an increment salary letter, share the right timing to send one and list what to include in it.
Related: What is an Appraisal Letter and How to Get it: Sample Included
How To Write An Increment Salary Letter?
There are some key points to consider while discussing how to write an increment salary letter. An increment letter has to convey the right meaning and have a clear format. Here are some important points to consider while writing one:
1. State your intention clearly
Ensure that your intention is clear and stated well in the letter. You can begin your letter with a short sentence about the purpose of the letter. Also, remember to choose an apt subject and subject line if you are sending the letter through an email.
Related: What Is A Performance Appraisal? (Definition And Types)
2. Mention your reason for requesting an increment
Provide clear reasons as to why you think your salary is due for an increment. Be professional in listing down valid reasons to state why you deserve the increase. Ensure that the premise of your case is valid and reasonable and do not list personal reasons. Back up your argument with recent successes, measurable impact and demonstrable examples of achievements.
3. State your expected salary
Before you quote an expected salary, perform sufficient research on the current pay rate for your role and experience according to market standards. Ensure that you are clear and direct while stating your salary expectations. You may either quote a percentage for the hike or a fixed amount as your expected salary.
Related: Salary Negotiation Tips and Examples
4. Make room for negotiation
It is advisable to be flexible in your request for an increment. State that you are open to negotiating and are willing to discuss the final amount. Leaving room for negotiation shows that you are ready to consider the mutual interests of your employer.
5. Express gratitude for the consideration
Always end your letter with a thank you note to your employer. Apart from common courtesy, it shows that you truly appreciate working with them and would like to continue working with them in the future, too. Express politeness and thank them for their time and consideration of your request.
Related: How To Write A Formal Letter
When To Write An Increment Salary Letter?
Choosing the right timing to draft your salary increment letter can be tricky. To identify the correct time to send in your request, it is wise to think like your employer. There are several points to consider regarding the right timing for your request:
When your organisation is recording huge profits
Keep in mind the financial situation of your company before asking for an increment. It is always a good idea to ask for a raise when your company is doing well financially. Doing so can increase the chances of your request being considered. So, do check the latest quarterly or annual reports to stay updated with the company's financial performance.
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After completing a big project
Another suitable opportunity to request a salary increment is immediately after completing a major project. This gives you a chance to highlight your contribution to the success of the project. Your request may also provide an opportunity for your employer to reward you suitably.
During the absence of a yearly pay raise
Most organisations conduct periodic employee appraisal processes followed by a suitable pay raise. If you did not receive this increment, it may be appropriate to ask for the same separately. It might be a good idea to review your last increment to then determine how much increment to request.
When the company is reviewing your performance
If your performance in the organisation has been consistently good, a performance review may be the best time to ask for an increment. Companies evaluate the overall performance of an employee during a performance review. These evaluations may take place quarterly or annually. This can be a chance for you to justify your request for an increment.
When you have additional responsibilities
Another chance to ask for an increment is when you have additional responsibilities to handle without a promotion or raise. An increment may be a good way of asking for compensation for the additional duties assigned to you. Taking up new responsibilities and handling them well shows competence and ownership and it is likely that the company may reward you accordingly.
After upgrading your skills and qualifications
Many employees undertake additional certifications and short-term courses to improve their skills and expand their knowledge. If you are planning on requesting a salary increment, a good time to do so may be upon upgrading your skills. This might also keep you motivated to deliver better results and feel rewarded for your new skills and value additions.
Related: 15 Types Of Business Letters (With Purposes And Components)
Benefits Of Writing An Increment Salary Letter
Putting a salary increment request in writing helps you formalise your request. By doing so, you initiate the official process of getting an increment, something that may have otherwise happened only after the appraisal cycle. Writing a professional letter requesting for an increment also gives you an opportunity to put on record all your achievements, successes and accomplishments. This can prove to be beneficial for future purposes, even if your increment request is not successful.
Related: How To Answer The Salary Expectation Question In Job Interviews
Things Not To Include In An Increment Salary Letter
If you include certain things or information in the letter, they are likely to create a negative impression. Here are a few things to avoid while writing your salary increment letter:
Salary information of your coworker
Bringing a coworker's salary information into the discussion may be extremely unprofessional. It is important to focus on your case and request rather than making a comparison with others. You can add valid data points and reasons, like the industry average salary figured, if required.
Related: Gross Salary and Net Salary: Definitions and Examples
Complaints and negative feedback
Ensure that your choice of words in the letter is positive and professional. Avoid discussing complaints and criticism and focus on setting the right tone and language in your letter. A well-written letter reflects your confidence and competence as an employee.
Personal financial situation
Even if you are experiencing a financial challenge in your life, it may be best to avoid discussing this aspect in your letter. Financial stress is not a professionally appropriate reason to include in a salary increment letter. Instead of focusing on your situation, highlight your positive contributions to the company.
Financial information of the company
One of the best times to request a salary increment maybe when your company is performing well financially. But it may not a wise idea to state this as the only reason in your letter. Only state your personal reasons for why you think you deserve a raise.
Related: What Is Salary Breakup? Why It Is Important To Know
Increment Salary Letter Template
Here is a template for a salary increment request letter for your reference:
Dear [Name of manager],
I am writing this letter to request a raise in salary. I have about five years of experience at [company name] as [insert job role].
Throughout my tenure in the organisation, I have been enthusiastic about taking up additional roles and responsibilities. Considering my consistent performance and the industry average salary for my position, I feel a [X]% increase in my current pay package is appropriate.
My role has evolved since I began working here. Some additional responsibilities that I oversee include updating the existing software, participating in budget decisions and project management. Specifically, I have accomplished the following goals this year:
Installing, testing, configuring and maintaining operating systems, system management tools and application software
Monitoring and testing applications for possible bottlenecks and identifying viable solutions
Taking part in operational support and design of information
Ensuring the availability of infrastructure
Coordinating with vendors and other IT experts for solving problems
Maintaining backup, security and redundancy strategies
The average annual salary for my position is [figure], as per my research and interaction with other industry professionals. This is approximately 10% higher than my current salary of [current salary figure]. Therefore, a [X]% increment in salary would align my compensation with the current industry standards for my job title.
Thank you for your time and consideration in reviewing my request. If required, I am open to discussing this further with you.
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