Create a salary increment or promotion letter with the hike amount and percentage calculated automatically. Print or save as PDF free.
An increment letter, also called a salary revision or appraisal letter, is the written confirmation an employer gives an employee when their pay is raised. It states the existing salary, the revised salary, the increment amount or percentage, and the date from which the new salary takes effect. It is the document the employee keeps as proof of their current compensation.
The employee name and designation, the current annual CTC, the revised annual CTC, the increment amount and percentage, the effective date of the revision, and usually a line recognising the employee's contribution. Many employers attach a revised salary breakup as an annexure so the new basic, HRA and allowances are on record.
Average annual increments in Indian companies have typically run in the 8 to 12 per cent range, with high performers and in-demand skills receiving more and flat or nominal revisions in difficult years. What matters more than the benchmark is that the increment is applied consistently against a stated performance rating.
There is no standalone statutory requirement to issue one, but a salary change alters the terms of employment recorded in the appointment letter, so putting it in writing is both standard practice and sensible. Employees also need it for loan applications, visa filings and their next job's salary verification.
Yes, and it is common in India for revisions to be declared a month or two after the appraisal cycle closes but be effective from the start of the financial year. When that happens the employer pays arrears for the intervening months, and the letter should state the effective date clearly so the arrears calculation is unambiguous.
Yes. Avani Business OS stores each employee's salary structure and KPI record, so an increment can be applied to the structure directly, the revised payslip flows through payroll automatically, and the increment letter is generated from the same record rather than typed out separately.
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