Salary Increases and New Roles: Should We Send Increment Letters to All Affected Employees?

Hello everyone, we have just made revisions to the remuneration of all employees based on their performance. I want to ask: is it necessary to send an Increment Letter to everyone who received a salary increase and a new designation with added responsibilities?

Thanks in advance.

It is a must to send the letter to all the employees. Everyone should know how they have been rated. Any grievances you have to handle for mutual understanding.

Date

To

Employee Name

Employee Code

<Previous Designation>

<Department>

Dear <Name>, we are pleased with your skills and overall demonstrated performance as <Previous Designation> on various projects with <Company Name>. Consequent to the review of your performance during the period of ____________ to ________, we have the pleasure of informing you that your rating is "Excellent."

We would like to express our appreciation and commendation for all the passion and commitment you have been exhibiting in your existing role. In recognition of your contribution and passion towards work, it is our pleasure to inform you that you have been promoted to <Current Designation>. Your revised CTC is <Amount>, and this comes into effect from the current month.

Your revised CTC structure is enclosed herewith as 'Annexure A.'

I hope this promotion will encourage and motivate you to continue putting in your best and perform well on all projects you are involved in.

Congratulations and keep up the good work.

With Best Wishes,

for <Company Name>

The employee who received the increment may have been on the verge of moving to a different IT slab or facing a similar situation, or there may be a difference in salary structure. From the company's perspective, the company has provided an increase, but instead of seeing an increment, the take-home pay is decreasing, which would obviously demotivate the employee.

These cases should be addressed separately by the company if they encounter them, taking into consideration the motivational aspect.

Regards,
Naveen Jain

Dear Mamta, basically speaking, an increase in Basic and DA will affect the Take-Home salary/Net salary. Try to avoid sharing the increased salary in these two heads.