Updated in May- 2024 | Subscribe to watch greytHR how-to video
An increment letter is an official record of the salary increase/change and is part of the employee’s personnel file. It is an important aspect of employer-employee communications. The letter promotes transparency and acknowledges the employee's contributions.
Managers
HR admins
Employees
Increment letters are important for managers, HR admins, and employees.
| Manager | HR Admin | Employee |
|---|---|---|
| Cultivate clear communication, motivation, and retention. | Ensure consistency and administrative accuracy. | Recognize employee contributions. |
| Foster open dialogue, recognize achievements, and offer growth opportunities. | Implement standardized procedures, and manage employee records. | Improved financial planning, and satisfaction. |
As an admin, to generate an increment letter for your employees, you must ensure to have performed the following activities:
Configure the letter templates: Customize and set up standardized formats and content for the increment letters.
Assign authorized signatories: Define and set up the authorized individuals or positions who will sign the increment letter generated from the templates. The signatories can be the manager, CEO, or director.
Create letter template: Add essential elements such as the company logo, contact information, recipient details, a clear subject line, specific confirmation details, and an official signature.
The employee must successfully complete a minimum of one year in the company, as per the organization’s compensation policy, to be eligible for an increment.
The salary increment approval must be completed and documented in the HR system.
The HR admin has access to the employees’ updated salary details and employee information.
To generate an increment letter, navigate to Employee > Admin > Generate Letter and perform the following actions:
On the Generate Letter page, click Prepare A Letter. A form opens.
In Step 1: General section, from the Letter Template dropdown list, select the Increment Letter template. The Serial No. automatically displays.
From the Authorized Signatory dropdown list, select the required employee.
Note: If you cannot find the required employee, click the Edit icon to add the required employee to the dropdown list.
In the Remarks text box, enter the remarks, if any.
Click Next. Step 2: Select Employees section appears.
From the Generate For options, select Single Employee.
Note: If you want to generate the letter for multiple employees, select the Multiple Employees option.
From the Employee Filter dropdown list, select the required category. A list of employees appears.
Note: Use the + icon to add a required category to the dropdown list, if required.
Using the checkboxes, select the required employee.
Click Next. Step 3: Preview section appears. You can preview the increment letter.
Enter the required information under the Text column for the selected employee.
Click Finish. The page displays a summary of the increment letter.
Select the employee using checkboxes for whom you want to publish the letter.
Under Publish selected letters, select the Send as an email attachment/Publish to Employee Portal/Require Employee Acknowledgement options as per your requirements.
Click Download to download the letters for selected employees. A zip file downloads to your system.
Note:
You can click Download to download the letters for selected employees. A zip file downloads to your system.
You can also download, publish, edit, and delete each generated letter using their respective icons on every row in the list.
The increment letter is generated and published in the employees’ ESS portal.
The employee has officially been notified of their salary increment.
A copy of the increment letter is stored in the employee's file in the HR system.