Increment letter format
An increment letter records a pay revision: the previous CTC, the new one, the effective date and, if it comes with a promotion, the new designation. The increase is worked out in rupees and as a percentage, and a revised salary break-up is attached.
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What the letter shows
- Previous and revised annual CTC
- The increase in rupees and per cent
- Effective date
- New designation, if promoted
- A revised component-wise annexure
- That other terms stay the same
- An acknowledgement for the employee to sign
Appraisal season in one go
Download the increment letter template, add each person’s revised CTC and effective date, and upload it. Every letter uses the same letterhead and salary split, and the ZIP holds one PDF per employee named by ID and name.
Check the PF effect
With PF capped, raising basic raises employer PF only up to the wage ceiling: Rs. 25,000 a month from 17 September 2026 and Rs. 15,000 before. The annexure uses the ceiling in force on the effective date.
Questions
How is the percentage worked out?
The revised annual CTC minus the previous one, divided by the previous one, shown to one decimal place. Both figures and the increase in rupees are printed.
Can the letter include a promotion?
Yes. Enter the new designation and the letter says the person is promoted from the same date, with the subject line changed to match.
What if the increment applies from an earlier date?
Enter the date the new pay applies from. Pay the difference for past months as arrears in the next payroll; the salary slip generator has an arrears line that is not reduced for loss of pay.
Why does it ask the employee to keep the figures confidential?
It is common practice in Indian workplaces. If your pay policy is open, remove the line in the Word file before sending.