Pay rise letter template
A pay rise letter tells an employee in writing that their pay is going up, by how much and from when. It is sent after a pay review, a promotion or a review meeting, and it doubles as the written notice of a change to the employee's contract. The employer, employee, old and new pay and effective date change every time.
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What changes each time
19 values. Everything else is your wording, kept exactly.
The parties
- Employer's full name
- Employer's address
- Employee's full name
- Employee's address
- Employee's first name
The rise
- Reason for the rise
- Percentage increase
- Current pay
- New pay
- Full-time equivalent pay
- Effective date
Back pay and other pay
- Amount of back pay, before tax
- Date up to which back pay is calculated
- Month of payment
- Other pay items that change
The contract
- Clause number
- Date of contract
- Specific contribution
- Sender's name and job title
The rules it usually needs
Written in plain English when the template is set up.
- One of several wordings
“The reason: an annual pay review, a promotion (with the new job title) or a review meeting (with its date).”
The document carries the wording for whichever applies, and the other wording is left out.
- One of several wordings
“Show the rise as a percentage increase, or simply as a new salary.”
The document carries the wording for whichever applies, and the other wording is left out.
- One of several wordings
“Say whether the figure is a salary or an hourly rate, and whether it is a year or an hour.”
The document carries the wording for whichever applies, and the other wording is left out.
- Only when…
“Include the pro-rata sentence only when the employee works part-time.”
As a part-timer's pay is a share of a full-time rate, the full-time equivalent figure is added so they can see the basis.
- Only when…
“Include the back pay paragraph only when the effective date is before the date of the letter.”
When this applies, the back pay paragraph is included; when it does not, it is left out and the rest of the document is unchanged.
- Only when…
“Include the table of other pay that changes only when other pay elements change from the same date.”
When this applies, the table of other pay that changes is included; when it does not, it is left out and the rest of the document is unchanged.
- Once for each item
“One row for each other pay item that changes, with what it was and what it becomes.”
The table has one row for each, so it grows or shrinks to match.
- Only when…
“Include the sentence about pension and other pay worked out from salary only when it is relevant.”
When this applies, the sentence about pension and other pay worked out from salary is included; when it does not, it is left out and the rest of the document is unchanged.
- Only when…
“Include a thank-you for a specific contribution only when it is appropriate.”
When this applies, a thank-you for a specific contribution is included; when it does not, it is left out and the rest of the document is unchanged.
- Only when…
“Include a signed acknowledgement block only when a signed acknowledgement is wanted.”
When this applies, a signed acknowledgement block is included; when it does not, it is left out and the rest of the document is unchanged.
Questions people ask
What should a pay rise letter include?
The new pay and the date it starts, the old pay for comparison, whether it is a salary or an hourly rate, and which clause of the contract it changes. If the rise is backdated, say how much back pay is owed and when it will be paid.
Does a pay rise have to be put in writing?
An employer must give an employee written details of a change to their pay at the earliest opportunity and no later than one month after the change. A pay rise letter that names the clause and the new rate does that job.
Does the employee have to sign a pay rise letter?
Not for a change that is in the employee's favour. Some employers ask for a signed acknowledgement to show the letter was received, which is why the acknowledgement block is optional.
What if the pay rise is backdated?
Say so in the letter, and set out the back pay for the period between the effective date and the date of the letter, before tax. It is usually paid through payroll in the next pay run.
Does a pay rise affect a part-time worker differently?
Part-time pay is the pro-rata share of a full-time rate, so the letter can show the full-time equivalent as well as the amount the employee will actually receive.
Use this template
It opens in DocuWeave as a template you can check, change and publish. Nothing is used until you do.