Is It Necessary to Send Increment Letters to All Employees in a Large Company?

Hi, I want to know if it is mandatory to give annual increment letters to each employee when the company declares a general increment at the end of the year. I can understand if it is a small company, it's easy to give letters to each one. I have 800+ employees in our company which includes labor, skilled, technical, office, managerial, etc., levels of people. What is the normal practice? Is it essential to give letters informing them about their increments, or is it enough that they will come to know when they get their payslip for Jan.? Views and comments will be highly appreciated. Thanks.

Hello Vinod,

Yes, it is essential to give increment letters in any case and with any number of employees.

Regards,

Khaiser Ali Shah

Dear Vinod,

HAPPY NEW YEAR!

Yes, it's important to give annual increment letters to all the employees as it will help them understand how much increment has been provided to each individual. Any number of employees may be there; increment letters have to be issued.

With the change in the salary slip, some will end up confused as to why such a change occurred. Therefore, one must release letters to avoid any kind of confusion and discrepancy in the process.

Regards, Bhavna

Hi, your question is "Is it mandatory to issue increment letters?

You can consider the following situations:

1. Covered by the scale of pay, and this scale of pay is issued at the time of joining or at the time of revision. Under this scenario, you do not need to issue a letter legally.

2. Covered by a general circular that talks about all details. Again, you do not need to issue a letter if you get this circular duly signed by all the employees.

3. Covered by settlements. Legally, you do not need to issue letters if it is a 12(3) settlement. If it is an 18(1) settlement, you need to issue letters and get the duplicate copies signed.

4. If it is performance-based increments, then you need to issue letters.

Siva

It is essential for employees to know about their increments, but this information can also be communicated via email.

Hi Vinod!

Mr. Siva has explained the subject very well. Yes, issuing an increment letter can be helpful to employees in understanding their pay raise well, but it is not mandatory to issue increment letters. Administratively or logistically speaking, issuing letters (800 nos.) is not easy. It depends on how well equipped your HRIS is. If you have provisions for a common draft letter in your software, then generating letters for 800 employees using details in the master database is the work of a few hours. (Not so sure about signing them :) And no comments about how to issue them:))

Mandatorily, you are not required to issue letters. However, increment letters do have a highly motivating effect on employees. People will be charged up on receiving letters. An appreciation on paper has a great effect. In my opinion, if you have a good HRIS for generating letters, you should.

- Hiten