Sample letter to employee informing them of increase in salary

Price increase letter

Most employers review their staff’s salaries on an annual basis and make the decison as to whether to increase them or not then. When the decision has been made for an increase, a letter directly to the member(s) of staff concerned is a formal way of conveying the good news.

Letter informing staff of a pay rise – sample 1

[full name of employee]

Dear [first name]

Salaries review

I am very pleased to advise you of a change affecting your pay. As you know you are employed on a salary that is locally determined and subject to an annual review based on the market, inflation and your performance.

As a result of the review which has been carried out by [myself / executive management team / personnel manager], I am very pleased to inform you that your salary has been increased to [new salary], and you will receive it [with immediate effect, from date etc].

I have been asked to convey this information to you by [executive management team / personnel manager] along with their appreciation of your contribution.

Yours sincerely,


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