Built and fact-checked by the DocNectar team — see our editorial standards
Key Features
Instant Calculation
Get accurate results in real time with our optimized algorithm.
Mobile Friendly
Fully responsive design. Works on all devices & screen sizes.
Privacy Focused
Your data stays on your device. We don't store any inputs.
100% Free
No hidden costs. This tool is completely free forever.
A salary increase letter makes a compensation change official — a clear written record of the new salary, the effective date, and the reason for the change.
This generator builds that letter automatically and calculates the increase amount and percentage for you.
How it works
Enter the employee's current and new salary, the effective date, and the reason for the increase (performance, promotion, market adjustment, annual review, or retention). The generator calculates the increase amount and percentage and builds a formal notification letter.
- Enter the employee's details and your company/manager details.
- Enter the current and new salary.
- Choose the reason for the increase and set an effective date.
- Generate the letter and download a print-ready PDF.
Examples
A performance-based raise
An employee moving from $80,000 to $88,000 receives a letter noting a $8,000 (10%) increase, effective on the stated date.
Who should use it
- Formalizing an annual performance-based raise.
- Documenting a promotion or market-rate salary adjustment.
Industry applications
- HR and compensation management
- People operations and payroll documentation
Advantages
- Calculates the increase amount and percentage automatically from the two salary figures.
- Covers five common reasons for a raise in one tool.
Limitations
- A general template — company-specific compensation policies or union agreements may require additional language.
Common mistakes to avoid
- Sending a salary change letter as the employee's first notice, without a prior conversation about the reason for it.
- Leaving the effective date ambiguous, which can create confusion with payroll processing.
Best practices
- Keep a copy of every salary change letter in the employee's personnel file for compensation history and compliance records.
Tips
- Double-check the new salary figure against your payroll system before sending — this letter becomes part of the employee's official record.