How to Write a Salary Increase Letter (With Example)

Updated 7 May 2023

A salary increase letter is a written request asking an employer for a higher salary. If you feel ready to ask for a salary increase, it might be time to write a note about your successful hard work in the company. Learning how to ask for a salary increase may increase your chances of successfully earning a raise. In this article, we show you how to write a salary increase letter, provide examples of what to include and explain when you can present this to your manager.

Related: 6 Tips for Your Next Salary Negotiation

How to write a salary increase letter

Understanding how to write a salary increase letter can be beneficial when asking for a raise. Depending on the company, you may aim the letter at your manager, supervisor or human resources (HR) department. The following guidelines can help you write a salary increase letter:

1. Start planning

Before drafting a letter, plan what you want to say. Think about why you feel you're ready for a raise. Consider your most significant achievements, contributions or rewards as a result of hard work. The employer may want to see these examples to make an informed decision about a pay rise.

You can write a salary increase letter as an email or printed document. This may depend on how you prefer to communicate with your employer. A formal letter is usually advisable when writing to senior figures.

2. Include the date and address

When writing a formal letter, it's essential to include relevant contact information at the top of the page. Consider noting your name, address, city or state, postcode, email and phone number. It's also helpful to include the employer's information. You may not need to do this step if you're writing an email instead.

3. Use the recipient's name

It's helpful to direct this to the manager or head of HR by using their full name. Including a full name can show the letter's formality. If you don't know their full name, it may be worth contacting another member of your team for help.

4. Write the introduction

This section discusses your reason for writing, your current position at the company, and how grateful you are to be working there. Be mindful of your manager's time by introducing the topic straight away. Your introduction may only comprise one to two sentences.

5. Discuss your achievements

Now it's time to state your specific reasons for a salary increase. List two to three achievements or contributions and explain why these benefited the company and how they have helped you grow in the position. Aim to support each statement with evidence to strengthen your case. You might include sales figures or translate statistics into percentages.

6. Discuss your preferred range

Consider stating your desired salary or salary range, including research from figures you discovered from reliable sources, such as Indeed Salaries. Use the research to support your salary claims on the position. The employer may want to see how this links to your experience and how you decided on these figures. Aim to keep this paragraph short to prevent the letter from exceeding a page.

7. Write a conclusion

The third paragraph can comprise two to three sentences that summarise what you have said. Mention how you're open to discussing the salary increase further, whether that's in person or over the phone. You can also say thank you for their time and show your appreciation for whatever decision they make.

8. Review your letter and sign your name

It's important to read your letter a few times to remove any spelling or grammatical errors or missing evidence. A well-written and professionally structured letter may persuade an employer to grant a pay rise. Also, make sure the tone sounds polite and suggestive.

The last thing to include in your letter is your name and signature. Most people use sincerely when ending a formal document, but you can also use kind regards or thank you, if you have a closer relationship.

10. Send it

Now it's time to send your letter, whether that's by post, by hand or through email. It's essential to wait for a response as the employer might need time to consider your request. Your employer may want to speak about it in person, so remember to look over your previous plan and what your main points were.

Related: How to Write a Formal Letter (With Example)

When to write a salary increase letter

When you send the letter is just as important as writing it. There can be a certain time frame in a company that might boost your chances of getting a salary increase. Below you can find a suitable time to ask for a pay rise:

When the company is doing well

If the company is doing well financially, it might be a good time to ask for a salary increase. They may accept your request if they're in a comfortable position to do so. You can usually tell when a company is doing well.

At the end of your contract

Asking for a salary increase at the end of your current contract can be beneficial, as this could give you the chance to express your dedication to the company. The manager might have already planned to review your salary/working arrangements, so presenting your salary increase letter could show them how much you've accomplished already. Make sure to highlight this reason in your letter.

Related: What Is a Contract Employee?

After finishing a large project

It may be a good time to ask for a salary increase once you've helped with a successful project. The employer might have fresh knowledge of how well you performed if you completed the project recently. You can use this in your letter by explaining your specific contribution and how it positively impacted the project.

When it's been 12 months

If you've been working at the company for a year or more, it might be worth writing the letter. This could give you an opportunity to discuss what you have done over the past 12 months. Companies often appreciate a low staff turnover. As a result, a new salary proposal could show your commitment to the company and suggest you plan to stay for the foreseeable future.

When you accept more responsibilities

Your employer might ask you to perform more daily duties, so it could be helpful to write your letter at this stage. Express how these extra tasks have boosted your performance, especially if you have just left the probationary period. It could be a good idea to list these responsibilities and how they helped you grow in your current position.

Salary increase letter template

Here is a template you could use to help structure your letter:

Dear [employer's name],

I am writing this letter to request a salary increase. I've been working as [position] in [company] for over [duration] now and can say that it's been an incredible experience so far.

After contributing to [recent project], I have felt as though my performance has improved significantly. [State an achievement] helped with the ultimate plan for the project and also developed my [relevant skills]. [Job aspect] is another area that benefited the project as I took on this responsibility by myself, learning how [what you learned]. This turned out to be a success, with [give percentage figures].

I feel as though a [percentage salary increase] is a reasonable request. After doing some research, I found that other [position name] in [region] are earning [salary] annually, which is [percentage] above what I'm currently earning. I thought this figure would be an appropriate amount.

[Thank the recipient for reading the letter]. I'm open to discussing this pay rise.

Thanks again for your consideration.

Sincerely,

[Your name and signature]

Salary increase letter example

Here is an example of a salary increase letter you could use:

Dear Frank Smith,

I am writing this letter to formally request a salary increase. I've been working as an administrator in Red Industries for over two years now and can say that it's been an incredible experience so far. I have always accepted more responsibilities in this role and will continue to help the company with its successes.

After contributing to the recent project, I have felt as though my performance has improved significantly. I achieved the goal of writing 20,000 words per week, which helped with the project's final plan and also developed my creative skills. Marketing is another area that benefited the project as I took on this responsibility autonomously, learning how to manage our finance and budget costs. This turned out to be a success, with 45% more sales than we originally estimated. The project taught me to manage multiple tasks efficiently. I aim to continue this hard work and develop further.

With that being said, I feel as though a 5% salary increase is a reasonable request. After doing some research, I found that other administrative assistants in Australia are earning $60,000 annually, which is 5% above what I'm currently earning. I thought this figure would be an appropriate amount.

I would just like to say thank you for taking the time to read this letter. I'm open to discussing this pay rise, please let me know what suits you best. My time at Red Industries has been fulfilling, and I'm looking forward to gaining more experience and skills.

Thanks again for your consideration.

Sincerely,

Rebecca Addison

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