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Pay Increase email template

The HR department is usually responsible for communicating changes to employees’ work conditions or contracts. This includes communicating salary increases which are eagerly anticipated by all staff members. Conveying a congratulatory message along with the below information will help you communicate the increase in salary to the relevant employees effectively.
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Why does it matter?

Salary increases are always a positive thing. It usually means the business as a whole is doing well, or the individual has exceeded expectations and gone above and beyond to complete their work.

When to send?

Depending on when the company conducts financial or annual reviews, the time to send out these emails can vary. However, the HR department should ALWAYS wait for a director/executive-level approval before sending any salary increase emails.

What to include?

The email should include the following information, and be written in a positive tone, with accurate information:

  • Congratulations
  • The percentage of the increase in salary
  • The figure for the new salary
  • Any new benefits
  • Reason for salary increase
  • The date at which the new salary will take effect

Template Email

Email Subject Line: [Year] Salary Increase

Dear [Employee First Name],

As you know we have recently concluded our annual appraisals. I am pleased to inform you that due to [the increased profits this year/your amazing performance/the company’s overall performance] we are offering a salary increase of [Insert % increase] which will bring your annual salary to [Insert amount]. 

Please see attached your updated contract of employment, along with the confirmation of the salary increase letter.

Take some time to read everything, then sign and return the contract to the HR department either via email or in person.

The details below briefly summarize the attached information:

  • [Insert reason for increase]
  • [Insert increase effective date]
  • [Insert which pays it will be reflected in – month]
  • [Insert any changes to benefits]

We would like to take this opportunity to thank you for your continued dedication and hard work to grow our business. We believe that by identifying hard-working team members and rewarding them for their work, we can create a supportive and motivating working environment where everyone is rewarded and recognized for the things they are great at.

If you have any questions or concerns, you are welcome to contact your supervisor/manager or the HR team directly.

We look forward to many more years of work with you.

Kind Regards,

[Your Name] 

[Your Job Title] 

[Company Name]

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