How to write a salary increase letter
You’ve been putting in extra hours, juggling more work, or maybe it's just time for a raise. Do you know how to ask for a pay rise? Asking for a pay increase can be a daunting task – but it’s important to take action if you feel you’re not being properly compensated for your work.
A pay rise is more than just extra money in your account; it’s being recognised for your contributions and feeling valued by your employer. When writing a letter for a pay increase, you’ll need to consider whether you simply want a raise or would like a full salary review, to update the terms and conditions of your contract.
In this article, we show you how to prepare a salary increase letter that accurately reflects the value you bring to your employer, alongside advice on when to send your request letter, and example letters to get you started.
What is a salary review letter?
A salary review letter is a formal request letter for a pay rise, based on your performance, achievements and contributions to the company. It’s your opportunity to make a case for why you deserve more pay, backed by examples and figures (if possible). These types of letters are most common in salaried positions, as wage workers are covered by awards, and freelancers/contractors set their own rates at the start of every contract.
Timing your pay raise request letter
Sending your letter at the right time can improve your chances of success. The best time to ask for a pay increase is when you’ve had a positive performance review or have recently had major achievements. This means your request comes at a time when your value to your employer has already been made clear, increasing the likelihood of a positive response.
Preparing to write a salary increment letter
When preparing a letter asking for a pay rise, write a rough draft first, to organise your thoughts and ensure you don’t miss anything important. If you’re not sure how to ask for a pay rise, it can help to send your draft to a trusted friend or colleague for some feedback or advice before going any further.
You should also research how much your job is worth, based on industry standards. What are others in similar roles being paid? Then look at it from your employer’s point of view and how a business owner would perceive value. Be specific, professional, realistic and positive in your request.
How to write a letter requesting a salary increase
When writing a letter requesting a salary increase, it’s important to have a clear structure to stick to, so your argument flows logically and it’s easy for your employer to follow.
Heading
Start with a heading that includes your personal details and your employer’s contact information. This includes your full name and other contact information like an email or phone number.
Greeting
Address the letter to the recipient using a formal greeting, including their title and full name, or title and surname. For example: Dear Ms. Kee, or Dear Mr. Collins.
Introduction
In the introduction, state the purpose of the letter and briefly summarise your accomplishments.
For example, I’d like to discuss the possibility of a pay increase. Since our team leader left, I have taken on management responsibilities while also maintaining my usual workload to ensure the team meets all our deliverables.
Body
The body of the letter is where you should go into more detail about your request and why you believe you deserve a salary increase. Here are a few things to cover:
- Give specific and measurable examples of your job performance, accomplishments and contributions, and explain how each of these has contributed to the success of the team and company. For example, Last quarter I implemented a new campaign that increased bookings by 5%.
- Use the STAR method to structure your examples and use data (like percentages or KPIs) where possible. Include your current salary, desired salary and reasoning for the increase – clearly and concisely explain how you have directly made a difference. For example, This increase alone equates to an estimated $43,790 in revenue per year, which more than covers my requested salary increase of $10,000.
- Highlight your commitment to the company, why you’re an asset, and how you will continue to be valuable to them in the future. For example, I am confident I can continue to improve our performance in the coming six to 12 months. Or, I’m currently completing a course on video editing, so I will also be able to help ease content bottlenecks within the next three months.
Closing
Close by thanking the recipient for their time and expressing your willingness to discuss further. For example, Thanks for considering my request, I’m happy to discuss or negotiate in person, as I’m sure we can come to a mutually agreeable solution.
Signature
Finally, use a professional sign-off such as Yours sincerely or Best regards and your full name and signature.
How to deliver a salary increase letter
Here’s some advice on how to ask for pay rise by email or in a formal letter:
- Set up a meeting with your manager to discuss your salary increase.
- Prepare for the meeting by gathering evidence of your performance, rehearsing what you’re going to say, and having a desired outcome ready.
- Start the conversation by thanking your manager for meeting with you and expressing your appreciation for the opportunity, then present your case confidently.
- Briefly explain that you’re requesting a salary increase, with a summary of your contributions that justify the request.
- Hand deliver the letter or follow up with an official email attaching the salary increase letter.
Pay rise letter template and examples
If you’re not sure where to start when writing your request, it can be helpful to look at some pay raise letter samples. Here are some examples of ‘how to ask for a pay rise’ emails, plus a follow-up email template.
Request salary increase email template
Subject: Request for Salary Review – [your name]
Dear [recipient's name],
I‘m writing to formally request a review of my salary. Since joining [company name], I have consistently exceeded KPIs and taken on additional responsibilities, such as [mention additional responsibilities].
After careful consideration and research, I would like to request a salary increase to [desired salary]. I would be grateful for the opportunity to discuss this further at your earliest convenience.
Thank you for your time and consideration.
Sincerely,
[Your name]
Follow-up email template:
Subject: Request for Salary Increase Follow Up
Dear [recipient’s name],
I’m writing to follow up on my request for a salary increase, which I submitted on [date of initial request].
I am happy in my role at [company name] and committed to delivering exceptional results, but I believe that my current salary doesn’t accurately reflect my contributions, or match industry standards for someone with my skills and experience.
I would be grateful if we could schedule a meeting to discuss this further. Please let me know if you need any additional information from me.
Sincerely,
[Your name]
Sample letter to ask for a salary increase
If you’ve recently had significant achievements at work, you’re in a good position to propose a salary increase. Here’s how to ask for salary increase as a sample letter:
Dear [employer's name],
I’d like to formally request a review of my current salary based on my recent performance and achievements. Since joining the company, I have consistently exceeded expectations and have been instrumental in [mention specific achievements or projects, e.g., increasing customer satisfaction by 25%].
After researching industry standards and considering my contributions, I believe that an adjustment to my salary would be appropriate. I am requesting a salary increase to [desired salary].
I would appreciate the opportunity to discuss this further at your earliest convenience.
Thank you for considering my request.
Sincerely,
[Your name]
Sample salary increase letter after a strong performance review
Here is a sample letter requesting a salary increase for an employee with strong performance:
Dear [employer's name],
I’d like to request a salary increase based on my recent performance review. Since joining [company name], I have consistently delivered high-quality work and have shown a strong commitment to achieving our goals. I’ve demonstrated my willingness to learn and grow professionally, taking on new challenges such as [mention new challenges or additional training].
After considering my contributions, I believe an increase to my salary would be appropriate. I’m requesting a raise to [desired salary], which I believe reflects my value to [company name].
I would appreciate the opportunity to discuss this further. Thank you for considering my request.
Sincerely,
[Your name]
Asking for a salary increase needs careful planning and a professional approach. It’s important to find out your value, time your request strategically, and write a concise and well-structured letter. Whether you ask for a pay rise by email or letter, you should detail the achievements and direct contributions that demonstrate the value you bring to the company, using concrete examples and numbers where possible. Remember to be respectful and appreciative, thanking your employer for considering your request. Finally, follow up after sending your letter and show your willingness to negotiate your salary increase.
FAQs
What is the difference between a salary increment letter and a salary revision letter?
While they may sound similar, there is a difference between a salary increment and salary revision letter:
- A salary increment letter asks for a specific increase of your current pay.
- A salary revision letter asks to review or change the terms and conditions of your employee compensation package.
When is the best time to request a salary increment?
The best time to request a salary increment is after you’ve had a great performance review, demonstrated new skills, or taken on more responsibility.
How should I research salaries before writing a salary increment letter?
You can research salaries on SEEK. Look at what similar roles are being paid (and what perks they get) and compare this to your own. Keep in mind that smaller companies generally have smaller salary budgets. To make a case for the value you bring to the company, write down your contributions and achievements, and outline how these have contributed to your employer’s success.
What are some tips for drafting an effective salary increment letter?
Plan what to say by organising your thoughts in a draft, based on the above structure. Be specific about the raise amount you want, and highlight your achievements and contributions to the company.
How can I make my salary increment letter specific and professional?
Make your letter specific by:
- being clear about what you want,
- including measurable outcomes (use the STAR method to structure examples),
- using formal language, and
- addressing the recipient respectfully.
What information should I include in the body of my salary increment letter?
In the body of your salary increment letter, talk about why you deserve a raise. Make sure to:
- Include evidence of your job performance, accomplishments and contributions to the company.
- Mention both your current and desired salary, giving reasons for the increase you’re asking for.
- Provide measurable outcomes and data showing your impact on important business goals, and highlight your commitment to the company, as well as your future contributions.
How should I follow up after sending my salary increment request?
Follow up by asking for a meeting with your supervisor to discuss it further and address any questions or concerns they may have. Reiterate your commitment to the company and your willingness to discuss the matter.
