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If a decision has been made to increase an employee's pay or salary, issue this model notification letter template to confirm the full details.
[Sender name]
[Sender address]
[date]
[Recipient name]
[Recipient address]
Dear [Recipient first name],
Notice of [pay | salary] increase
[Further to our conversation ]I am [delighted | pleased] to [confirm | notify you of] an increase in your salary of £[amount] per [annum | month | week].
This increase is in respect of [insert details here... (e.g. promotion, change of role, cost of living, reward for performance / loyalty], and will take effect from [date].
[Two copies of your updated
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A pay or salary increase notification letter formally confirms a change to an employee's pay, including the new salary or rate of pay and the date from which the change takes effect. It provides a clear written record of the agreed change and helps ensure that the employee, manager and payroll team have a consistent understanding of the new arrangements.
A pay increase notification letter will typically include:
the employee's current and new salary or rate of pay;
the date the increase takes effect;
the reason for the increase, where appropriate;
details of any changes to related pay or benefits arrangements; and
confirmation of any action the employee needs to take.
Where possible, it is good practice to discuss the increase with the employee before issuing the written confirmation. This provides an opportunity to explain the reason for the change, answer questions and clarify any conditions or related changes before confirming the arrangements in writing.
Before issuing the letter, check the employee's contract and any relevant pay, bonus or benefits arrangements. This is particularly important where the increase forms part of a wider remuneration review or involves changes to other contractual terms. The effective date should also be clear so that the correct rate is applied by payroll.
Written confirmation provides a clear record of the change agreed or communicated to the employee. It can help avoid misunderstandings about the new rate of pay, effective date or related arrangements and provides a useful reference for the employee, manager and payroll team.
Tip: A salary increase is often an important employee experience moment. Discussing the increase personally before providing written confirmation can help ensure the employee understands what is changing and why, while allowing any questions or concerns to be addressed promptly.
Related HR resources and workflow
Explore the HR resources that may be relevant before and / or after using the Pay or salary increase notification letter, helping you understand the wider process, maintain appropriate documentation and follow a consistent approach.
Our pay or salary payment arrangements policy template provides information regarding pay or salary payment arrangements.
Our Pay Increase Notification Script Template informs employees of salary adjustments, fostering transparency and appreciation for their contributions.
Use these best practice actions, recommended timescales and process stages to understand when and how the Pay or salary increase notification letter should be used, helping ensure each step is handled consistently and appropriately documented.
Employment Rights Act 1996: Ensures employees are provided with written confirmation of any changes to their terms and conditions, including pay increases.
Equality Act 2010: Requires employers to ensure pay increases are applied fairly, without discrimination based on protected characteristics.
National Minimum Wage Act 1998: Mandates that pay adjustments comply with updated minimum wage rates where applicable.
Income Tax (Earnings and Pensions) Act 2003: Outlines employer responsibilities for correctly adjusting PAYE and National Insurance contributions following a pay increase.
Best Practice: Communicate pay changes clearly and in writing, including the effective date, reasoning, and any changes to contractual terms.
In addition:
Follow company policies: Ensure that the pay increase is consistent with company policies and procedures, including those related to performance reviews, promotions, and salary scales. If there is a collective bargaining agreement or employment contract in place, make sure that the pay increase complies with the terms of those agreements.
Be clear and concise: The letter should be clear and concise, outlining the details of the pay increase, including the amount of the increase, the effective date, and any conditions or expectations that may be associated with the increase.
Document the decision: Keep a record of the decision to provide a pay increase, including the reasons for the increase and any supporting documentation such as performance evaluations or salary surveys.
Maintain confidentiality: Ensure that the pay increase notification is kept confidential and only shared with those who need to know, such as the employee's immediate supervisor and the human resources department.
Avoid promises: Avoid making promises that the company may not be able to keep, such as promises of future pay increases or promotions. Be transparent and honest about the reasons for the pay increase and the company's expectations for the employee going forward.
Yes. This template has been designed for organisations of all sizes, including small businesses, charities and growing employers. It follows UK employment law best practice and can be adapted to suit your organisation.
Our templates are developed with UK employment legislation, Acas guidance and HR best practice in mind and are reviewed and updated as relevant requirements change. However, every employment situation is different, so the template should be adapted to the circumstances and checked against the employee's contract and your organisation's procedures before use.
Yes, we highlight the areas of the document that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable format (such as .doc or .xls) so you can customise them easily, and in PDF format for easy sharing.
If you're looking for broader support, we also offer toolkits and library bundles that include the Pay or salary increase notification letter template, along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need deeper advice.
AI can produce a document quickly, but effective HR documentation needs to be more than well-written words. It needs to reflect relevant UK employment law, HR best practice, practical considerations and the circumstances in which it will be used. These resources have been professionally developed around that wider HR context, drawing on extensive practical experience, rather than simply generating a generic document from a prompt.
Darryl Horn, Chartered HR Director
Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.
He has extensive practical experience of managing pay and benefits processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.
"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."
"He is someone I trust; consistent, dependable, and committed to doing things properly."
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