How to write a salary increase letter (with tips and samples)

How to write a salary increase letter (with tips and samples)
Jobstreet content teamupdated on 13 December, 2024
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The salary increment letter is a formal communication regarding salary adjustments. An employee's salary plays a crucial role in their motivation and job performance. Regular salary increments reflect an organisation's commitment to employee satisfaction and retention. It reflects the organisation’s appreciation towards them and encourages employees to strive for excellence.

A salary increment letter is sometimes confused with a salary revision letter. A salary increment letter is what notifies an employee of an increase in their current salary. It reflects their contributions and performance. On the other hand, a salary revision letter outlines changes to the overall salary structure. This potentially affects multiple employees or positions within the organisation.

A salary increase letter works in 2 ways. An employer may send a salary increase (or increment) letter to inform an employee about a rise. As an employee you too can send a letter or pay rise email to ask for higher pay. Sending a salary increment letter to your employer can show your initiative and investment in your career. By articulating reasons for the salary increase request, you can demonstrate your value to the organisation.

Following the advice in this article can help you create a compelling salary increment letter. Here is what we will cover:

What is a salary increase letter?

A salary increase letter is a formal communication used to notify an employee about a pay rise. Employers send a salary increment letter to inform employees about a pay increase. This letter serves as a written record of the pay rise. Both parties can refer to it to verify information and avoid misunderstandings.

From an employee's perspective, a salary increment letter is a formal request to increase their pay. It outlines achievements and contributions to the company and any enhanced skills or additional responsibilities.

Timing your salary increment request

Timing is crucial when requesting a salary increment to increase your chances of success. Here are some important considerations:

  • Company's financial health
    Evaluate the company's financial situation. If the company has had a successful and profitable year, or has recently secured a major client, investment, or partnership, your request for a pay rise is more likely to be well-received.
  • Alignment with performance review cycles
    ⁠Timing your request to coincide with employee evaluation cycles can be beneficial. Asking for a salary increase right after receiving a positive performance review can significantly strengthen your case.
  • Following major achievements
    Consider requesting a rise after major achievements. Completing a significant project or securing a big client showcases your contributions and justifies a rise, proving your ability to enhance the company's success.

Preparing to write a salary increment letter

Here are tips for writing a convincing letter for a pay rise:

Research the salary for your position

Determine if your current pay is competitive by knowing the typical salary range for your position. In Singapore, you can use the JobStreet salary research tool to gather accurate information, which can help you decide on a reasonable salary increase.

Understand the employer's perspective

Many factors affect an employer's decision to increase your salary. The main ones are the company's budget and your performance. Look into these before writing your pay rise request letter. Understand the company's financial situation and your value to the organisation. This can help you determine how large a salary increase to ask for and when to make your appeal.

Create a draft of your letter

Follow these tips when creating the draft:

  • Use professional language. Write in a respectful tone. Use words appropriate for business communications.
  • Be positive. Focus on your achievements and contributions. Avoid mentioning the salaries of other employees.
  • Provide important details. Specify your reasonings for the salary increase. Give details about your additional responsibilities, excellent performance, or newly acquired skills.
  • Set a realistic goal. Keep within the salary range of your position and industry. Mention that you are open to negotiating and discussing the matter further.
  • Follow up on your request. If you asked for an increase in a one-on-one meeting, email afterwards to confirm the details of your request. Follow up after one to 2 weeks or if it is past the given response date.

How to write a letter requesting a salary increase

Here is a breakdown of the letter's basic parts and what to include in each one:

Heading

Include your full name, address, and contact information. Indicate the date you wrote the letter. Below, add the recipient's name, position, and the company name and address.

Greeting

Formally address the reader. You can begin with "Dear" and follow it with "Mr" or "Ms" and their last name. If you know the person's title, you may use it.

Introduction

Indicate the purpose of your letter. Include a summary of your accomplishments. You can also mention other information that strengthens your case.

Body

Support your appeal with details of your performance and accomplishments. Include concrete results, and explain how you helped the organisation reach important goals. State your current and desired level of pay. Express your commitment to the company. Tell how you plan to contribute to its growth.

Closing

Thank the person for their time. Say you are willing to discuss the matter further. You can also mention that you hope for a favourable response to your request.

Signature

Include a professional sign-off. It is common to use "Sincerely". Under this, add your full name and signature.

two women in a meeting in a business setting

How to deliver a salary increase letter

Starting the conversation about a salary increase can be tricky. Begin by setting up a face-to-face meeting with your manager or supervisor to discuss your request. This approach can help both parties get on the same page.

What to prepare for the meeting

Prepare for the meeting by noting your accomplishments, contributions, and skills you want to highlight. Predict possible questions and think of answers. Your boss may ask for specific examples to support your request. Be ready to discuss your career goals and how a rise can help you meet them.

How to present a strong case for a salary increase

Present a strong case by focusing on concrete achievements and measurable outcomes. Highlight how your work has directly contributed to the company's success. Use data and specific examples to back up your request.

How to start the conversation

Start the conversation by expressing your appreciation for your current role. Then, state your request for a salary increase clearly and confidently. Explain the reasons for your request, emphasizing your contributions and future goals.

Delivery methods

You can hand-deliver your salary review letter during the meeting or in a private setting. Alternatively, follow up with an official email and attach the letter.

Template for a follow-up email

Here is a simple template you can follow:

Subject line: Follow-up on request for salary increase  

Dear [Name of manager/supervisor],

I am grateful for the opportunity to discuss my salary increase request with you on [date]. Your insights during our conversation were invaluable.

Per our discussion, I have attached my formal request letter for your review. Please let me know if you have any questions or require additional information.

Thank you once again for your time and consideration. I eagerly await your feedback.

Sincerely,

[Your name]

Follow-up email examples

You can use the template above without any changes. You can also make it more personal. Add a few sentences about your discussion. Or restate the reasons you deserve a pay rise.

Here is an example:

Subject line: Follow-up on request for salary increase

Dear Mr. Tan,

I want to express my gratitude for taking the time to meet with me on 29 March 2024 to discuss my salary increase request. I value the thoughtful advice you provided and your genuine interest in my career development.

As discussed, I have attached my formal request letter for your consideration. Please let me know if you have any questions or require additional information. Your guidance and support throughout this process are deeply appreciated.

Thank you once again for your time and consideration. I look forward to hearing your feedback.

Best regards,

Nurul Lim

Example 2

Subject: Follow-Up on Recent Salary Discussion

Dear Mr. Goh,

I hope you had a restful weekend. Following our meeting on 1 April 2024, I m reaching out to share further details about my request for a salary adjustment.

Attached is a detailed letter outlining my accomplishments and the rationale behind the proposed increase.

Thank you for your time, and I am available to discuss this further whenever it is convenient for you. I appreciate your attention to this matter.

Best regards,

Priya Nair

Salary increase letter examples

Here are 2 pay rise letter samples for your reference:

Request letter for a performance-based pay rise

Siti Zainab Binti Hussain

Block 29, Pasir Ris Street 21

#05-456

Singapore 510029

[email protected]

+65 9123 4567

25 April 2024

Mr. Abdullah,

Manager

18th Floor, Suntec Tower Three

8 Temasek Boulevard

Singapore 038988

Dear Mr. Abdullah,

I am writing to request a formal salary increase. I have been with Intelligent Solutions for two years and have consistently exceeded expectations as a programmer. 

During this period, I have taken on additional responsibilities. These include training junior programmers and serving as a technical consultant for other departments. I have also spearheaded projects that have contributed to the company's growth, such as replacing our outdated legacy system and automating our data entry process. 

I believe that my performance justifies a 10% increase from my current salary of SGD 3,500 per month. I am committed to this company and look forward to growing with it. 

Thank you for your time and consideration. I am available to discuss this further at your convenience. 

Sincerely,

[Signature]

Siti Zainab Binti Hussain

Request letter for a salary increment to reflect the market rate

Alia Ng

Block 29, Tiong Bahru Road

#10-123

Singapore 168732

[email protected]

+65 9876 5432

12 April 2024

Sarah Lee

Manager

Future Tech Corporation

Level 5 XYZ Corporate Park

10 Anson Road

Singapore 079903

Dear Ms Lee,

I am writing to request a salary increment for my position as a product designer, reflecting the current market rate and my performance.

I have researched the salary for positions like mine in Singapore, and the average rate is SGD 5,350 per month. Given that I currently earn SGD 4,800, I believe an increase to this amount would be appropriate.

My performance in the 2 years I have worked has been excellent. I have consistently received positive reviews and led projects that contributed to the company's success. These include the development of our latest product which was a nominee for the Best New Product award at the recent Digital Marketing Summit in Singapore.

Given the above, I deserve an increase in my salary. I am fully committed to the company and its continued success.

Thank you for your time and consideration. I look forward to hearing from you soon. I am available to discuss this further at your convenience.

Best regards,

[Signature]

Alia Ng

man working at a workplace

Conclusion

When writing and sending a request letter for a salary increase, it is essential to be professional and concise. Conduct research on the company's financial situation and your position's market rate. Be specific by mentioning your achievements and other information that supports your case. Time your request to improve your chances of success. 

For further guidance, here are some tips to help you excel in job interviews and secure your desired salary. You can also refer to this blog for strategies on negotiating a higher salary.

FAQs

Here are answers to questions about this topic.

  1. What is the difference between salary increments and salary revision letters?
    A salary increment letter is a request for a pay rise. It may also be an employer's notice to the employee that their salary is increasing. A salary revision letter details changes to the salary structure. This covers an employee's salary and other benefits, such as bonuses.
  2. When is the best time to request a salary increment?
    One of the best times to request a pay rise is after a positive performance evaluation or major achievement, and another is when the company is doing well.
  3. How should I research the appropriate salary for my position in Singapore?
    You can use resources like the Ministry of Manpower’s salary benchmarking tools, job portals, salary surveys and Jobstreet’s career advice page to understand the market rate for your position. Comparing your current salary with industry standards can help you determine a reasonable salary increase.
  4. What are some tips for drafting an effective salary increment letter?
    Maintain a professional and positive tone. Be specific in your reasons for asking for a pay rise and realistic in the increment you want. Thank the reader for their time, and express your openness to negotiation.
  5. How can I make my salary increment letter specific and professional?
    Provide details about your successes and contributions to the company to back up your request. Specify your current and desired salary. Use formal language, address the recipient by name, and sign your letter.
  6. What information should I include in the body of my salary increment letter?
    ⁠Include reasons for asking for a pay rise in the letter. Highlight your performance, new skills you have acquired, and additional responsibilities you have taken on. Mention your commitment to the company in this part of the letter.
  7. How should I follow up after sending my salary increment request?
    Send a polite email to ask about the status of your request after a week or 2. Keep it brief and professional.
  8. What should I do if my salary increase request is denied?
    If your request is denied, ask for feedback on why it was not approved and what you can do to improve your chances in the future. Set specific goals and timelines for re-evaluation and continue to demonstrate your value to the company.

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