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How to Write a Pay Increase Letter + Template

Pay Increase Letter TemplatePay Increase Letter Template
min read
August 21, 2023

A handshake may have been good enough in the old days, but it’s become standard practice to document salary changes in black and white. 

Pay increase letters are an opportunity to outline new job responsibilities and notify employees of salary changes. They also give employees the certainty that their salary increase will be implemented as discussed and can be used by HR and managers as a reference when determining future salary increases. 

There are a few situations where you might need to write a salary raise letter, so we’ve created a pay increase letter template for the most common ones. Just copy them here for free, no strings attached.

Pay Increase Letter Templates

Below are five salary increase letter templates you can use. These letters go by many names, but you can feel confident that whether you say salary increase, pay raise, or some combination of the two, all are equally polite ways of saying salary increase. 

You’ll just want to be sure to customize the details of the sample letter to match your circumstances for the raise. 

The letter format is the same whether you send it formally or via email, but if you’re going to print it out, you’ll want to add to the top:

  • Your company letterhead
  • Date
  • Subject line

Now let’s get to the templates.

How to Write Your Own Pay Raise Email or Letter 

You can quickly put together a letter by including these essential elements:

Basic information

Start your letter off by including at the top:

  • Your company information
  • The current date
  • “Re: Pay increase” as the letter’s subject. 


After addressing the employee, here’s your first paragraph broken down by sentence: 

  • One or two sentences detailing their current salary, new salary, and when the raise takes effect. You can also list their new job title if applicable. 
  • One sentence congratulating the employee on their raise.


Next, you’ll want to write one to two short paragraphs explaining why you granted the raise. The goal is to let the employee know what they are doing well and to list any additional responsibilities that come with the pay bump.


Here you’ll spend one sentence congratulating them again on the raise and another thanking them for their hard work and professional excellence. You can also include who to contact if they have questions about the pay rate increase.


Sign and print your name to finish off the letter. 

Write Your Pay Raise Letter Today

Salary raise letters are an important document for businesses to send. They not only formally let employees know of their pay increase, but also create a paper trail for the human resources department and list additional duties. 

Now that you know all there is to know about pay increase letters, all that’s left to do? Use our editable templates to send a letter today! 

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