Announcement Letter for Salary Increase: How to Write and its Importance

Announcement Letter for Salary Increase

A salary increase can be justified by changing responsibilities and long periods of good service. Giving your employees awards for their hard work and efforts shows that you value and respect what they do. 

Moreover, salary upsurge is provided to an employee to be able to identify improved competence skills and compensate the team member for taking on additional accountabilities. Through an announcement letter, you can inform your employees about the salary increase as they go above and beyond in their performance. 

In this article, we will go over the announcement letter for salary increase, how to write one, and example and template as well to help you craft your own. 

What is an Announcement Letter for Salary Increase? 

An Announcement Letter for Salary Increase is a formal document that informs employees of an approaching salary increase. Every pay increase is an opportunity to motivate your employees and establish a culture that values hard work and continuous improvement.

Announcing salary increases to your employees does not have to be difficult, but it should not be done without a letter. 

Importance of Writing This Letter

Here are some of the reasons why salary increase announcement letters are considered necessary. These will enable you to learn more.

  • Employers must understand how to write salary increase announcement letters because companies occasionally need a way to inform a large number of employees or clients about inevitable company salary changes all at once.
  • Delivering an announcement letter for a salary increase  gives everyone instant access to important information.
  • Employees will be informed and prepare early for cost living adjustments. 

How to Write This Announcement Letter

In drafting your own letter, there are some steps that you need to consider. Here are some: 

  1. Collect important information 

Gathering important information before writing a letter will most likely highlight relevant details to the appropriate recipients like employees. 

  1. Make an outline 

The following step in writing an announcement letter is to outline what you intend to say. Providing a basis for your announcement allows you to keep your letter organized so that your recipients can clearly understand the letter’s focus and any key details related to the topic.

  1. Make it brief 

From beginning to end, an effective announcement letter for salary increase focuses primarily on the subject of the announcement, so keep it short and simple for your recipients to understand.

  1. Keep your letter in a positive tone

Consider framing the announcement as positively as possible. Highlight saying thanks for your employees’ efforts, raising concerns for their well-being, and offering suggestions to help improve the situation after you’ve provided them with essential information.

  1. Proofread 

Check your announcements for grammatical, punctuation, and capitalization errors before sending them out.

Announcement Letter for Salary Increase Template 

The salary increase letter template below can be used for employees who have successfully completed a probation period and are eligible for a salary increase.

[Your name]




[City, ZIP Code]

[Phone Number]

[Email Address]


[Employee’s Name]


[City, ZIP Code]

Dear [Employee’s Name],

We are pleased to inform you that you are now eligible for a pay increase as a result of completing our company’s 45-day probationary period.

Your annual base salary will increase from $[amount] beginning on [date]. Please refer to your employee portal for a detailed breakdown of your monthly pay.

Congratulations on finding a new home at Endless Industries! We have a selective hiring process, as you know, and we are pleased to see you rise to the challenge.

We look forward to sharing your continued success!


[Your signature]

[Your name] 

Announcement Letter for Salary Increase Example 

Clai Alcantara 

Head of Human Resources

Shine Industries Co. 

123 Business Rd. 

Business City, NY 1234 

(413) 456 7890

December 12, 2020 

Patricia Vargas 

123 Main Street 

Anytown. NY 6783 

Dear Ms. Vargas, 

This letter serves as official notice that your base salary will be increased from $35,000 to $50,000 effective January 1, 2021. Check with Human Resources to find out how much your paycheck will be based on the deductions and other options you’ve selected.

The marketing team that you led achieved notable results. Your new product campaign increased because you met the goals we set for this year. Furthermore, your contribution has increased as a result of your commitment to furthering your leadership skills.

This is a well-deserved salary increase. I want to personally thank you for all of this, but especially for your unwavering loyalty and dedication to our company’s success. It is greatly valued. 



Clai Alcantara 

Key Takeaways 

  • A salary increase is given to an employee in order to recognize improved competence skills and compensate the team member for taking on additional responsibilities.
  • When a salary increase announcement letter is delivered, everyone has immediate access to important information.
  • Keep your letter brief and simple so that your recipients or employees can understand it.
  • Before sending out your announcements, double-check them for grammatical, punctuation, and capitalization errors.