Increment Letter is a document which states the salary increment given by the employer to the employee. An increment letter is usually given after the Performance appraisal cycle is completed, or when employee performance is good, or as per the organisation policy. Increment letter is also known as Appraisal Letter.

It is a common process that every year after completion of the financial year or as per the organisation policy, employees will expect a salary hike from their employer. Even employers will also do performance appraisal and they will be ready with all the required data that how much budget they need to allocate for the salary hike and how much increment should be given to individual employees. Since salary is the best motivational factor for employees, employers have to be very careful in dealing with the salary increment process.

There is no prescribed content for an increment letter. It is up to each employer to determine the information that they wants to cover in increment letter. If you are not sure what to include, then PayHR provides you with various increment or apprisal letter format.