Negotiating your salary can be a key step in advancing your career and boosting your financial stability—but it can also be pretty intimidating. The good news is that with the right approach, it doesn’t have to be so scary. That's where a salary increase letter comes in.
Whether you're asking for a raise due to your great performance, increased responsibilities, or changes in the market, a well-crafted letter asking for salary increment can be a powerful (and smooth) way to make your case.
In this article, we'll walk you through everything you need to know about writing a salary increase letter, from understanding its purpose to tips on crafting an effective one. We'll also include sample letters and templates to help you get started. Plus, we’ve interviewed Muse career coach Jenn Smith, who shares her top advice on navigating this critical career move.
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What is a salary increase letter?
A salary increase letter is a formal document that employees use to request a raise from their employer. Unlike a salary review letter—which is typically initiated by the employer to communicate pay adjustments—a salary increase letter is written by the employee seeking a boost in compensation.
Writing a salary increase letter can be necessary for several reasons:
- Performance improvements: You've consistently exceeded your performance goals or achieved a significant milestone and believe your contributions are worth a higher salary.
- Increased responsibilities: Your role has expanded significantly, and your current salary no longer reflects the scope of your responsibilities.
- Market adjustments: Industry standards and market rates for your position have increased, and your current salary needs to catch up to these benchmarks.
When writing a letter to request a salary increase, it's generally more effective to address it to your direct manager or your department’s director rather than HR. Your manager is more familiar with your work, contributions, and the value you bring to the team. They are also likely involved in budget decisions and have the authority to advocate for your raise.
Is it OK to ask for a raise through a salary increase letter?
Yes, writing a salary increase letter can be a formal and respectful way to request a raise. It allows you to clearly articulate your reasons, provide evidence of your achievements, and give your employer time to consider your request. Plus, a letter is a documented record of your request and can be reviewed by decision-makers at different levels of the organization.
On the other hand, having an in-person conversation can be generally more effective. “This allows you to present your case dynamically, outlining your accomplishments, contributions, and the value you bring, and respond to questions or concerns in real-time,” Smith says, adding that a direct conversation also allows for immediate feedback. “Your manager can provide insights into decision-making, share any constraints or considerations, and offer guidance.”
She also believes it’s a good idea to supplement your conversation with a follow-up email to ensure clarity and provide a reference for future discussions.
How to write a salary increase letter
These tips will prepare you for writing an effective pay raise letter:
1. Research salary benchmarks
Conducting extensive research will strengthen your case and help you present a compelling argument.
“Research industry salary benchmarks for your role, experience level, and geographic location,” Smiths says. “Use reliable sources like industry salary surveys, compensation reports, and online salary databases.”
Additionally, be sure to understand your company's salary ranges, performance evaluation criteria, and typical raise percentages.
2. Choose the right time
Timing is crucial when it comes to writing a letter requesting pay increase. Making your request at the wrong time can significantly reduce your chances of success.
“Typically, organizations have annual or semiannual performance review cycles,” Smiths says. “Discuss this with your manager before the performance review process starts so they can consider it as they begin budget conversations.”
One common mistake she sees is “asking for a raise at an inappropriate time, such as during a company's financial downturn or immediately after a major organizational change or layoffs.” Avoid doing that at all costs.
3. Keep it clear and straightforward
Begin your letter by setting the context for your request and remind your employer of your role within the company. Clearly state your position, tenure with the company, and the purpose of the letter.
4. Detail your contributions and impact
In the main section of your letter, outline your accomplishments and contributions to the company. Highlight specific achievements, projects, or responsibilities that demonstrate your value.
Provide evidence of your impact, such as performance metrics, positive feedback from clients or colleagues, and examples of how your work has benefited the company, explaining how your contributions justify the proposed raise.
5. Conclude with gratitude and reaffirmation
Summarize your key points and reiterate your appreciation for the opportunity to discuss your compensation. Express gratitude for the support and experiences you have gained and reiterate your commitment to the company. This positive tone reinforces your professionalism and leaves a lasting impression.
Salary increase request letter example
Here’s a sample letter for salary increase request to show you how these tips can be put into practice:
Alex Johnson
123 Elm Street
Springfield, IL 62704
alex.johnson@email.com
July 25, 2024
Emma Thompson
Director of Sales
Innovative Tech Solutions
456 Maple Avenue
Springfield, IL 62704
Dear Ms. Thompson,
I hope you are well. I am writing to formally request a review of my current salary. I have thoroughly enjoyed working at Innovative Tech Solutions over the past three years and appreciate the opportunities for growth and development that have been provided to me.
During my time here, I have consistently exceeded expectations and made significant contributions to the Sales team. For example, I spearheaded a new email marketing campaign that increased sales by 15% and successfully launched our new TechY product line, resulting in a 20% revenue boost.
In addition to my core responsibilities, I have taken on new challenges, such as leading the training program for new sales representatives and managing key client accounts, which have significantly contributed to our team's success.
I have also undertaken several professional development activities, including completing a certification in Advanced Sales Strategies and attending workshops on market trends, which have further enhanced my skills and ability to contribute to our team.
Based on my research of industry standards and salary benchmarks for my role and experience level, I believe that an adjustment in my compensation is warranted. Therefore, I respectfully request a salary increase to $85,000. This adjustment would better reflect the value I bring to the team and align my compensation with industry standards.
I am confident this increase will further motivate me to continue delivering high-quality work and contributing to the success of Innovative Tech Solutions. I am more than willing to discuss this request in person and provide any additional information that may be required.
Thank you for considering my request and for your ongoing support.
Sincerely,
Alex Johnson
Raise request letter template
Now, here's a template for a raise request letter to help guide you in drafting your own:
[Your Name]
[Your Address]
[Email Address]
[Date]
[Recipient’s Name]
[Recipient’s Title]
[Company’s Name]
[Company’s Address]
Dear [recipient’s name],
I hope you are well. I am writing to formally request a review of my current salary. I have thoroughly enjoyed working at [Company’s Name] over the past [number] years and appreciate the opportunities for growth and development that have been provided to me.
During my time here, I have consistently exceeded expectations and made significant contributions to the [Department] team. For example, I [List your accomplishments, using quantifiable results whenever possible, such as increased sales by 15% through a new email marketing campaign; successfully launched a new product line, resulting in a 20% revenue increase; etc.].
In addition to my core responsibilities, I have taken on new challenges, such as [List additional responsibilities].
In addition to these accomplishments, I have undertaken several professional development activities, including [certifications, courses, and training programs], which have further enhanced my skills and ability to contribute to our team.
Based on my research of industry standards and salary benchmarks for my role and experience level, I believe that an adjustment in my compensation is warranted. Therefore, I respectfully request a salary increase to [desired salary or salary range]. This adjustment would better reflect the value I bring to the team and align my compensation with industry standards.
I am confident this increase will further motivate me to continue delivering high-quality work and contributing to the success of [Company Name]. I am more than willing to discuss this request in person and provide any additional information that may be required.
Thank you for considering my request and for your ongoing support.
Sincerely,
[Your name]
FAQ
How often should I make a salary raise proposal?
Typically, you should ask for a raise once a year, ideally around your annual performance review. If you have taken on significant additional responsibilities or have had exceptional achievements, it might be appropriate to request a salary review sooner. However, be mindful of your company's financial health and the timing of your request.
Should I wait for a performance review?
Waiting for a performance review is often a good strategy, as this is a natural time for salary discussions. However, if you feel that your contributions have significantly outpaced your current compensation, you might consider requesting a meeting outside of the review cycle. Just ensure your request is well-timed and substantiated.
What if the salary increase request is denied?
If a salary review is denied, consider asking for specific feedback. “Work with your manager to set clear goals—create a development plan that outlines the steps you need to receive a raise,” Smith says. “Consider discussing alternative forms of compensation, which could include bonuses, additional vacation days, flexible working arrangements, and professional development opportunities.”
Key takeaways
Whether you opt for a formal letter via email, a direct conversation, or a combination of both, the key is to present a well-reasoned case for your increased-salary request. When crafting your letter, keep these takeaways in mind:
- Avoid approaching the conversation with an aggressive or entitled attitude. Politeness and professionalism will help you make a positive impression.
- Document any professional development activities you've undertaken, such as certifications, courses, training programs, or conferences. This shows your commitment to growing within your role and adds weight to your request.
- Be confident in your request to demonstrate your self-assurance and understanding of your worth. Clearly state your desired salary or salary range and show you are informed about salary ranges for your position.
- Explain how a salary increase will help you contribute even more to the company's success. Position your request as a mutually beneficial arrangement that will enhance your productivity and the value you bring to the organization.
- Use clear and concise language, avoiding jargon or overly complex sentences. Ensure your message is easily understood and directly addresses your key points. After writing it, don’t forget to proofread it.