Salary Increment Letter Generator
Confirm an employee's pay raise in writing — new salary, effective date and reason. UAE & Pakistan formats. Free PDF.
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Date:
Subject: Salary Increment
Dear ,
We are pleased to inform you that, in recognition of your performance and contribution, the management has approved a revision in your salary.
Your revised monthly salary will be AED ( only). This revision is effective from .
All other terms and conditions of your employment remain unchanged.
We thank you for your dedication and the value you bring to , and we look forward to your continued success with us.
Please sign and return a copy of this letter as acknowledgement of acceptance.
Yours sincerely,
_______________________
HR Manager
Acknowledged & accepted:
_______________________
Fill in: Company Name, Date of Letter, Employee's Full Name, Designation, New Salary (monthly), Effective From, Signatory's Name
What is a salary increment letter?
A salary increment letter is a formal document an employer or HR department gives an employee to confirm a pay raise in writing. It records the new salary, the effective date and the reason for the increase — whether a performance review, a promotion or a market adjustment. While the good news is often shared in person first, the written letter is what makes the change official, updates the employee's file, and gives both sides a clear record for payroll and future reference.
When do you need one?
You issue a salary increment letter whenever an employee's pay is being revised upward — typically after an annual appraisal, on promotion, or as a cost-of-living or market adjustment. Employees frequently ask for it because the written confirmation is needed for their own records and is often requested by banks for loans, by landlords, or by visa authorities as proof of revised income. For employers in the UAE and Pakistan, putting the raise in writing avoids ambiguity about the amount and the effective date, and serves as the basis for updating the contract or payroll.
Format & what to include
A salary increment letter is written on company letterhead and addressed to the employee by name, with their designation and (optionally) employee ID. It states clearly that the salary has been revised, gives the new monthly figure in figures and words, and ideally the previous figure and/or the percentage increase. It specifies the effective date, the reason for the increment, and confirms that all other terms of employment remain unchanged. Where the raise accompanies a promotion, the new designation is included. Many letters add a brief note of appreciation and an acknowledgement line for the employee to sign and return. It closes with the signature, name and title of the authorised signatory.
Frequently asked questions
Should the new salary be written in words as well as figures?
Yes. Writing the new salary in both figures and words removes any doubt about the amount and is the standard practice for any document that states a sum of money, just like a salary certificate or offer letter.
Does the employee need to sign the increment letter?
It is good practice to include an acknowledgement line for the employee to sign and return, confirming they have received and accepted the revised salary. This protects both sides and creates a clear record for the file.
Can a salary increment letter be used as proof of income?
Together with recent payslips or a salary certificate, yes — banks, landlords and visa authorities often accept it as evidence of your revised income. For some purposes a separate salary certificate stating your current salary may also be requested.
What's the difference between an increment letter and a promotion letter?
An increment letter confirms a change in pay; a promotion letter confirms a change in role or title, which often (but not always) comes with a raise. When both happen together, a single letter can confirm the new designation and the new salary — which this generator supports.