How to use it
- 1Enter your company name, address and logo once. They are saved on your device for next time, along with who signs.
- 2Fill in the employee's name, ID, designation and department.
- 3Choose the reason (the annual review, performance, or a promotion with the new designation) and the date the revision takes effect.
- 4Say whether the figures are the monthly gross salary or the annual CTC, and enter the current and revised pay. The box under the form shows the increase.
- 5If you want the revised monthly structure in the letter, open 'Revised salary structure', fill in basic pay, DA and each allowance, and tick the box. Then check the preview and press Download PDF / Print.
Increment Letter – a filled-in sample
Made with the tool above from made-up details: every name and number in it is invented. Press “See a filled-in example” in the tool to open it there and download it.
What the letter says
- The revision: the current and revised pay, as monthly gross or annual CTC, from a stated date
- The increase, in rupees and per cent, worked out for you
- The reason, if you want one: the annual review, performance, or a promotion with the new designation
- Optionally: the revised monthly structure as a table, that all other terms remain unchanged, a request to keep the salary confidential, a line of appreciation, and a place for the employee to sign as received
Check the structure before you send it
A rise that goes only into allowances can push basic pay plus DA below half of the gross. Under the labour codes, the part of the excluded allowances above half then counts as wages for provident fund and gratuity, so the revision can cost more than the figure on the letter. Fill in the structure and the box under the form shows the share; our appointment letter page explains the rule.
After the letter
From the effective month the salary slip shows the revised pay, and any salary certificate issued after that should too. Keep the signed copy of this letter with the employee’s appointment letter and any confirmation letter.
Sources
- Code on Wages, 2019, section 2(y): the definition of wages, and the half-of-remuneration rule; the four labour codes in force since 21 November 2025
Questions people ask
What is an increment letter?
A letter from the employer telling an employee that their pay has been raised, by how much and from which date. It may come with a promotion, and it often sets out the revised salary structure. It is the employee's written record of the new pay, and the employer's record that the change was communicated.
Is an increment letter required by law?
No law prescribes a separate increment letter. It is how a pay change is put in writing, and it saves arguments later about what was agreed and from when. Keep a copy signed as received on the employee's file, with their appointment letter.
What should it say?
The current and the revised pay, and whether the figures are the monthly gross or the annual cost to company; the date the revision takes effect; the increase in rupees and per cent; the new designation if it comes with a promotion; and, if you choose, the revised monthly structure and a line that all other terms remain unchanged.
Should I give the monthly gross or the annual CTC?
Either, as long as the letter says which. The cost to company usually includes what the employer pays on top of salary, such as its own provident fund contribution, so a CTC figure is larger than the gross the employee sees on the payslip. Choose under 'The figures are' and the letter names it.
Should the letter show the salary structure?
It helps, because the split matters under the labour codes. Their definition of wages (section 2(y) of the Code on Wages, 2019) takes in basic pay, dearness allowance and retaining allowance; if the items it leaves out, such as house rent allowance and conveyance, add up to more than half of the total pay, the part above half is added back to wages for provident fund, gratuity and similar benefits. The box under the form shows what share of the revised gross is basic pay plus DA.
What if the increase takes effect from an earlier month?
Give the earlier date under 'With effect from', and say in the extra paragraph how and when the arrears for the past months will be paid, so the employee knows to expect them.
Can the letter be in Hindi?
Yes. Switch Document language to हिंदी above the preview and the whole letter is worded in Hindi, under the subject 'वेतन वृद्धि'. It is written to the employee ('आप'), so it reads the same whoever the employee is.
Can I download it in Word, or get a blank format?
Yes. Press Word (.docx) above the preview for an editable file, or 'Blank format' for one to fill in by hand, with the revised structure as a table to complete. The blank PDF and Word files are also linked at the top of this page.
Last reviewed: 26 October 2026