The Ultimate Guide to Writing Salary Increase Letters in 2021

letters for salary increase, salary increase request letters, sample letters for salary increase Skillhub
Table of contents

Sample

Format

Who to Ask?

The Main Constituents

What to Omit?

The Right Time

The Wrong Time

To Sum Up

When recruiters hire you for a job, at first, you'll have to come to terms with what an employer can offer, especially if you are new to the job market. However, as your relationship gets stronger, it's quite natural to seek growth and pay increase. 

Some companies will send salary increase letter to employees occasionally. But, sometimes, you might need to write a salary increase request letter yourself.

Don't know how to start a salary increase letter? You'll learn everything you need to know on this guide, or you have a chance at any time to delegate it to our Skillhub online resume writing service. We'll get you covered.

But how to ensure its acceptance? Here, you will learn:

  • How to ask for a higher payment
  • How to write an effective letter
  • Under which circumstances it will be appropriate

Sample Salary Increase Letter

Find below a sample letter for salary rise recommendation:

Sender's Name

Contact Details

Date

Recipient's Name

Contact Details

Dear [Name],

I am writing to you with a request for a salary increase. As a top-performing sales manager with consistent 20% quota excess and over 5 years devoted to the company's growth, I have been enthusiastic about taking on additional duties and roles.

Over the past year, my role in the company has evolved, resulting in a 30% increase in the scope of responsibilities.

Taking into consideration my high performance, professional achievements, and consistent increase in qualifications, I believe a 15% salary increase is appropriate.

Thank you for your time. I am looking forward to hearing back from you and am open to any negotiations.

Sincerely,

[Name]

Salary Increase Letter Format

When writing a salary increase request letter for a company, following a proper format and document organization is the key to success as they add professionalism and clarity to your writing.

It has to be concise and straight to the point. Here is what to include:

  • A clear explanation of the purpose;
  • A reason for your request;
  • Justification;
  • Expected pay;
  • Room for negotiation;
  • Appreciation for consideration.

Pro Tip: An expert writer from SkillHub, Rachel Evans, stresses the importance of using the right tone of voice. Rachel recommends individuals seeking salary increase write their letters in a friendly but confident manner.

Who to Ask in a Letter for Salary Increase

Of course, receiving a salary increase letter from employer is a perfect scenario as you won't have to bother to write yourself. However, not every company encourages personal letters from employer to employee, and if that's the case, you will have one big and important decision to make - who to address it to.

Such requests are meant for people directly responsible for your salaries, bonuses, and raises. These positions can be called differently, for example, a manager, supervisor, executive assistant, head of the department, etc. Sometimes, a letter for salary increase can also be forwarded to the Human Resources team. But, typically, it's best to ask your direct boss.

Why not ask higher-level decision-makers? As a rule, companies foster trust between managers and their subordinates. Thus, if you go straight above the person who currently manages your salary, this may look unprofessional and may not be tolerated by the company.

The Main Constituents of an Increase Salary Letter

If you want your manager to accept the salary increase sample letter you submit, be sure it has all the following:

  • Purpose - Your letter needs to have a purpose. It doesn't have to be a lengthy explanation, but you have to clearly outline your intention.
  • Reason - Tell the manager why you feel like you deserve higher pay.
  • Justification - Provide solid arguments that show that you really have to get a proposal letter from them. For example, indicate the number of years you've been in the company, highlight your level of qualification, mention additional training, stress your professional accomplishments and awards, etc.
  • Expected Pay Rates - Indicate your expectations clearly (in a fixed amount or percentage) to ensure that your request will be interpreted correctly.
  • Room for Negotiation - Always show that you are flexible and willing to negotiate.
  • Appreciation - Always say thank you for the time managers took to consider your request.
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What to Omit While Writing a Letter?

Regardless of your career field, demands, and expectations, there are some things that each applicant should omit.

If you want to get an approval notification, here's what to avoid in your employee promotion letter:

  • Complaints - Beginning to complain about something in the letter, you put your whole career at risk.
  • Company's performance - If you apply for higher pay because of a good financial situation in the company, avoid mentioning it.
  • Co-workers' salaries - Many companies don't tolerate requests that bring up information about the salaries of other team members.
  • Your finances - Don't make any critiques concerning your financial trouble.

The Right Time for Salary Increase Letter

If you want to make the right impression, it is to not only know how to ask for salary increase but also WHEN to do it.

First of all, salary rise, even if it isn't too huge, is already a big decision for a manager that will affect the overall budget of the company. Thus, be ready that managers will address such requests with caution and consider them very scrupulously, which is why you must have a solid grounding for asking.

Secondly, each such request has a direct influence on your career. If you show yourself as an employee who doesn't bring any real value but is constantly asking for more, you risk losing your job.

Let's see when it's appropriate.

During the Company's High-Performance Periods

The financial situations in the companies that employ you can play a significant role in your career decisions. When an organization is suffering losses, it can be a sign for writing your resignation letter with reason for leaving. But, when a company is on the rise and experiences high profits, this might be one of the best opportunities to ask for a salary increase.

Thus, before you decide to start writing your salary letter, be sure to consider the financial situation in your company, as it can affect the manager's decision both in a positive and a negative way.

After One Year Without Salary Rising

Offering salary rising opportunities annually is a very common tendency among the majority of companies. This tendency is very easy to explain. By providing employees with an opportunity to request higher pay after one year of work, companies keep their teams happy, at the same time keeping salaries rising under control.

Thus, one more reason for writing your letter of request is after you've completed another year of work for the company. Also, if there was a general increment that you've missed, it can also be a solid reason to submit your salary increase proposal letter sometime soon.

After a Huge Success

Your professional output directly affects the benefits you will garner. Every goal you reach, all the small and big achievements, as well as every successfully completed project - it all raises your value in the company and, thus, can be a weighty reason to ask for a higher salary. In the modern corporate environment, employers rely a lot on employee input for shaping their benefit and compensation programs. And, you might be surprised by how willing your employers will be to award you for your successes.

Therefore, another reason to write your sample letter for salary increase is another big accomplishment.

After Adding New Qualifications

Companies across the globe are encouraging their employees to grow both personally and professionally. Many companies offer occasional and regular on-site training and growth programs, all to help their teams level up their skills. And you can use this to your benefit as well.

When a specialist adds new knowledge, skills, and qualifications, their capacity in the workplace increases, and so does their value in the eyes of the employer. Thus, additional qualifications can be your core justification for a salary raise. Trust us, if you use it as your main argument, you are doomed to get a confirmation letter!

The Level of Payment in the Market

Although not many are aware of this, there is such a thing as a market adjustment salary increase. There is always a "market average" that influences the salary level for different jobs. Of course, the overall pay rate depends on a variety of individual factors such as work experience, education, skills, etc. However, any changes in the current rates for your occupations also play a significant role.

Here is a tip - if you plan on writing a salary increase request letter, be sure to do some research to find out the average salary level. It can serve as another weighty argument.

While Your Employer Is Checking Your Performance

Every organization practices occasional reviews of its staff's performance. These reviews can take place monthly, quarterly, or annually but, in any case, this period is a perfect time for an employee to state his new job expectations.

However, keep in mind that it will only be appropriate to submit your how to ask for salary increase sample letter during the performance check if you are 100% confident that your performance really was great. If that's the case, your letter will have more weight. Otherwise, if your performance was mediocre, you will most definitely receive a negative response to your request.

After Receiving New Responsibilities

Finally, there is one more justification for salary rise we'd like to discuss, and, probably, it's one of the weightiest ones. This reason is the change in the scope of your professional responsibilities.

It doesn't really matter if your job title changes or not. Whenever the employer increases the scope of your daily duties, you have the right to request a corresponding compensation. It is logical and right to provide employees with a salary adequate to their commitment. Thus, if, in this case, an employer refuses your salary increase, it might be a red flag and a reason to resign.

The Wrong Time to Ask for a Pay Raise

As we said earlier, correct timing plays a crucial role in the process of requesting salary increase.

We already told you when asking for a pay rise is appropriate. Now, let's see when it is better to wait:

  • Financial troubles - When the organization is facing financial difficulties, there just might be no budget for salary increases.
  • Recent layoffs - Mass firings affect the company's structure and budget a lot, so it's also not the best time to ask for higher pay. 
  • Before the upcoming performance review - When your team is just a month or a few away from an annual increment or scheduled performance review, don't rush into it. Most likely, the company will refuse you in an unplanned increase.

To Sum Up

Let's quickly recap the key points:

  • Follow a clear format of your letter;
  • Always consider if it's the right time to ask for a salary increase;
  • Keep your tone positive and confident, omitting complaints.

Follow all the steps and tips we shared to have a chance that the boss will review your salary increase letter and approve it.

Want to have a guarantee of success? Entrust professional writers with years of experience to take care of this matter for you. The team of SkillHub will help you save time and boost the likelihood of receiving a salary increase confirmation letter!

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