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Total reward statement letter template

3 minute read
£ 15

Our Total Reward Statement Letter template communicates employees' comprehensive rewards, including benefits, bonuses, and more, highlighting their total package value.

We also have budget-friendly bundles featuring this template:

What is a Total reward statement letter?

A total reward statement is a document that provides an overview of an employee's total compensation and benefits package. It includes details on the employee's base salary, bonuses or incentives, and the value of any benefits, such as pensions, health insurance, and paid time off. The statement aims to communicate the full value of an employee's package, beyond just their basic salary.

Total reward statements can be an effective way to improve employee engagement and retention by providing transparency and recognition of the value of an employee's compensation and benefits package. It can also help to support a positive workplace culture, by demonstrating an employer's commitment to fair and competitive compensation and benefits.

Total reward statements may be provided to employees on an annual basis, or as part of an ongoing employee communication program. The statement may be provided as a physical document, or it may be available online through an employee portal.

Overall, a total reward statement is a useful tool for employers to communicate the value of their compensation and benefits package to their employees, and to support employee engagement and retention.

Total reward statement letter template
total reward statement letter template

What legal and best practice aspects should employers be aware of?

There are several UK employment laws that employers should consider when issuing a total reward statement letter to their employees. Here are some key employment laws to keep in mind:

  1. Data Protection Act 2018: Employers must ensure that they are handling employee data in compliance with data protection laws. This means obtaining employee consent to collect and process their data, ensuring that the data is accurate and up-to-date, and protecting the data from unauthorized access or disclosure.
  2. Equality Act 2010: Employers must ensure that their reward packages do not discriminate against employees on the basis of protected characteristics, such as age, gender, race, or disability. Employers should also ensure that they are providing reasonable adjustments to accommodate employees with disabilities.
  3. Employment Rights Act 1996: Employers must provide employees with written statements of employment particulars, which include details of their pay and benefits package. Employers should ensure that their total reward statement letter is accurate and up-to-date, and reflects the information provided in the written statement of employment particulars.
  4. National Minimum Wage Act 1998: Employers must ensure that they are paying employees at least the national minimum wage or national living wage, depending on their age and employment status. The total reward statement should reflect the employee's correct rate of pay.
  5. Working Time Regulations 1998: Employers must ensure that they are providing employees with their statutory entitlement to paid time off, including annual leave and public holidays. The total reward statement should reflect the employee's correct entitlement to paid time off.

Total reward statement [Delete this line]

[Company name]

[Sender address]



[Recipient name]

[Recipient address]


Dear [Recipient first name],


Your teward statement for [year]

We are pleased to present you with your Total Rewards Statement, which summarises the value of your compensation and benefits package as of [Date].

Base Salary: [insert base salary amount]

Annual Incentives: [insert annual incentive or bonus amount, if applicable]


  • [insert benefit name and value, such as pension scheme contributions, private medical insurance, life insurance, etc.]
  • [insert additional benefit name and value, if applicable]

Paid Time Off:

  • [insert number of vacation days or annual leave entitlement]
  • [insert number of sick days or sick leave entitlement]

Total Rewards: Base Salary + Annual Incentives + Benefits + Paid Time Off = [insert total value of employee compensation and benefits package]

We want to emphasize the value we place on your contributions to our organization and your ongoing development. Your continued success is vital to the success of our company, and we are committed to providing a competitive compensation and benefits package to support you in achieving your career goals.

Please note that the information presented in this statement is based on our records as of [Date]. If you have any questions or concerns about the information provided, please do not hesitate to contact our HR department.

Thank you for your dedication and commitment to [Company Name]. We look forward to your continued success.

Yours [faithfully | sincerely],



[Sender name]

[Sender job title]

[Sender telephone]
[Sender email]


The Total reward statement letter template is issued by an employer
Issue path
The Total reward statement letter template is issued to an employee


Annual, or as and when required.

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Why buy our Total reward statement letter template?
  • You save time and effort with a professionally written, editable HR document that is tailored to meet best practice.
  • You ensure compliance with applicable ACAS Codes of Conduct and other legal requirements.
  • You are notified by email whenever this template or its supporting resources are updated.
  • You enjoy 12 months of unlimited access with no hidden fees or extra costs.
  • You unlock a 25% discount on all future purchases or renewals of our libraries, toolkits, and templates.

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