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:
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 is crucial when requesting a salary increment to increase your chances of success. Here are some important considerations:
Here are tips for writing a convincing letter for a pay rise:
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.
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.
Follow these tips when creating the draft:
Here is a breakdown of the letter's basic parts and what to include in each one:
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.
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.
Indicate the purpose of your letter. Include a summary of your accomplishments. You can also mention other information that strengthens your case.
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.
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.
Include a professional sign-off. It is common to use "Sincerely". Under this, add your full name and signature.
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.
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.
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.
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.
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.
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]
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
Here are 2 pay rise letter samples for your reference:
Siti Zainab Binti Hussain
Block 29, Pasir Ris Street 21
#05-456
Singapore 510029
+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
Alia Ng
Block 29, Tiong Bahru Road
#10-123
Singapore 168732
+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
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.
Here are answers to questions about this topic.