FREE TEMPLATE · HR LETTERS

Salary increment letter

Confirm a pay rise clearly: the current and new salary, the effective date and the reason. The percentage is worked out for you.

The details

CompanyEmployee’s full nameTheir job titleSigned bySigner’s job titleLetter date

This letter

Current monthly basic salaryNew monthly basic salaryEffective dateReasonPersonal note (optional)

[Company]
13 November 2026

Private and confidential
[Employee name]

Dear [Employee,

Salary increment

I am pleased to tell you that, following the annual salary review, your monthly basic salary will increase from [current salary] to [new salary], with effect from [date].

All other terms of your employment remain unchanged.

Thank you for your contribution. We look forward to another good year together.

Yours sincerely,

[Name]
[Job title]
[Company]

! Still to fill in: Company, Employee’s full name, Their job title, Signed by, Signer’s job title, Current monthly basic salary, New monthly basic salary, Effective date.

Before you send it

Explain how the number was decided. People accept a number more easily when they understand it.
Keep pay letters private and send them directly.
Remember CPF: the new salary changes contributions from the effective month.

A starting point, not legal advice. Check your contracts and company policy, and ask HR or a lawyer if you are unsure.

THE GUIDE

Telling someone about a pay rise

Tell them in person, explain how the number was decided, then confirm it in writing.

Explain the number

What the increase is based on: performance, market rates, new responsibilities.
How it compares with the team budget, if you can share it.
What would lead to a bigger increase next time.

Frequently asked questions

How is the percentage worked out?

(New salary − current salary) ÷ current salary × 100. The letter does this for you.