Promotion and Salary Increment Letter Format and Sample

Promotions and a salary increase are a vital part of every organization, company, etc. It encourages employees to work hard and helps the institution prosper. Without this, employees will not be encouraged to do their best. Therefore, everyone benefits from it. When an employee receives a promotion and salary increment letter, they feel happy.

A promotion and salary increment letter is the letter that an employer presents to an employee when they want to promote them and increase their salary. This usually occurs due to the hard work and effort that the person has put in. The letter is a formal and professional one and should be created like this.

Importance of a Promotion and Salary Increment letter:

The promotion and salary increment letter is important due to the following reasons:

  • Is a formal way to inform workers and employees that their rank and pay is increasing in the organization
  • Is proof that this increase has occurred in case the boss forgets this
  • Allows the professional environment to be upheld

Tips to create the Promotion and Salary Increment letter:

An employer will usually need this letter therefore it is a good idea to know its format. When creating it the following points can be kept in mind:

  • Microsoft Word: Because it is professional, you need to type it in a proper application like Microsoft Word. Over here it is possible to choose readable fonts and make the style look formal.
  • Date: Include the date so that it is known when it was written.
  • From: You will need to state who it is from. This will be the boss and employer. State their designation and the name of the company.
  • To: The employee to whom the letter is being addressed, their full name, and the post will be stated.
  • Subject: Here you will briefly tell what the letter is for. It can be something like “Promotion and Increment Letter”.
  • Address the employee: You can begin with “Dear” and then the name of the employee.
  • Body: Start by stating that the company has been reviewing the employee’s performance in their post for some time now. Include that the head in the specific department has recommended that the post and salary be increased.

    In the next paragraph state that you are pleased to announce the new post. Tell that the post is clear. It is necessary to tell when this will occur, give the date. The new salary amount should be given as well and from when this will be given. If there are any other benefits of the new post such as health policies, etc. tell them as well.

    You can state what the new responsibilities will be in point format. End with wishing them the best and “Yours sincerely”. The signature of the person writing the letter has to be given along with the name of the company and its designation.
  • Use words carefully: You must choose your words carefully. Make it clear and do not include unnecessary information. Let the employee know what is expected of them and what their new role will be. The words should be formal and professional. The style and formal must be like this as well.

The letter has to be clear and let the employee know what their new pay and post will be and from when the effect will happen. The above points can be kept in mind when making the letter. The words you use must be professional also.


Letter sample

The following is a sample of the promotion and salary increment letter so that you can get an idea of how to compose it.


Date: November 12, 20XX

Managing Director
NAB Industries

Mr. John Hopkins
Research Officer

Subject: Promotion & Salary Increment for [X]

Dear Mr. Adam

We have had the opportunity to analyze your work as Research Officer during the previous three months. Your Head has requested that your post be increased and a raise in your salary occur because of your hard work and dedication.

I am pleased to inform you that your promotion to Senior Research Officer will take effect from December 1, 20XX. The monthly salary increase will be $10,000/- with effect from December 1, 20XX. Car allowances $2,000/- per month with effect from December 1, 20XX. You will be eligible for health insurance for your whole family.

Your new responsibilities will include:

  1. Training beginner Research Officers
  2. Undertaking advanced research in new and exciting areas
  3. Coaching present employees

If you have any queries feel free to contact us at [X] or call [X]. Best wishes and regards.

Yours sincerely,

NAB Industries
Managing Director

File: Word (.docx) 2007+ and iPad
Size 21 Kb