Please see this format
Rgds
Rone A Manapuzha
======================
Date
Ref : .................................
Name
Place
Sub: Increment-.........
Dear Mr........
On the basis of your performance during the year ........., the management is pleased to increase your Basic Salary from Rs ............./- p.m. to Rs ............/- p.m., with effect from .................
In addition, the Management is also pleased to increase your Allowance from Rs .......... p.m to Rs ............/- p.m with effect from ...........
Please be advised that this increment is based on your performance as adjudged by your annual performance appraisal as well as the company’s performance and it is not a mandatory payment that the company is obligated to make to the employee.
Your increment will be subject to income tax/other deductions as per the provisions of the Income Tax Act and other statutes as may be applicable from time to time.
We wish you all the best in your future endeavors for the company.
Regards,