Email template · Performance and feedback
Salary increase email
In short
A salary increase email tells an employee their pay is going up: the new rate, the percentage or amount, the effective date, the first paycheck it appears in, and why. Use the templates below for merit raises, market adjustments, promotion increases and hourly rate changes, plus subject lines and a short SMS.
When to send it: Send it right after the manager tells the employee in a one-on-one, and at least one full pay period before the change shows up in a paycheck. For company-wide hourly increases, send it at least a week before the effective date.
Salary increase email: 4 versions
Merit increase
SubjectYour salary increase, effective [Effective Date]
Hi [First Name], Thanks for taking the time to talk through your review with me. As we discussed, I'm happy to confirm a merit increase to your base salary. - Current annual salary: [Current Salary] - New annual salary: [New Salary] - Increase: [Percent]% ([Amount]) - Effective date: [Effective Date] - First paycheck with the new rate: [Pay Date] This reflects [one or two specific contributions, e.g. how you rebuilt the onboarding schedule for the night shift and cut first-week attrition]. Your formal letter is attached for your records. If anything on your pay stub doesn't match, contact [Payroll Contact] at [Payroll Email]. Thank you for the work you put in this year. [Your Name] [Title], [Company]
Market adjustment
SubjectPay adjustment for your role
Hi [First Name], We recently reviewed pay for [Job Title] roles against current market data for [Location / Region]. Based on that review, we are adjusting your pay. Your new [annual salary / hourly rate] is [New Rate], up from [Current Rate], effective [Effective Date]. You'll see it in your paycheck on [Pay Date]. This adjustment is separate from your annual review, which is still scheduled for [Review Month]. If you have questions, I'm happy to walk through it with you. [Your Name] [Title], [Company]
Promotion increase
SubjectYour new role and salary: [New Job Title]
Hi [First Name], Congratulations again on your promotion to [New Job Title]. Here are the details we talked about: - New title: [New Job Title] - Reports to: [Manager Name] - New annual salary: [New Salary] (up from [Current Salary]) - FLSA status: [Exempt / Non-exempt] - Effective date: [Effective Date] [If status changes: Because the new role is exempt, you will no longer record hours or receive overtime from the effective date.] The signed promotion letter is attached. Let me know if you have questions. [Your Name] [Title], [Company]
Hourly rate increase (group)
SubjectNew pay rates for [Job Title] starting [Effective Date]
Hi [First Name], Good news: starting [Effective Date], the base rate for [Job Title] at [Site Name] goes up from [Current Rate] to [New Rate] per hour. Shift differentials stay the same: [Differential Details]. The new rate will show on your paycheck dated [Pay Date]. Questions? Ask your supervisor or contact [Payroll Contact]. Thanks for everything you do, [Your Name] [Title], [Company]
Subject line ideas
- Your salary increase, effective [Effective Date]
- Confirming your new pay rate
- Pay adjustment for your role
- Your new role and salary: [New Job Title]
- Salary revision letter attached
- New pay rates for [Job Title] starting [Effective Date]
- Your compensation update for [Year]
SMS and WhatsApp version
Hi [First Name], it's [Your Name] from [Company]. Your pay rate goes up to [New Rate] starting [Effective Date]. Details are in your work email. Questions? Text or call [Phone Number]. Reply STOP to opt out.
Placeholders to replace: [First Name], [Current Salary], [New Salary], [Current Rate], [New Rate], [Percent], [Amount], [Effective Date], [Pay Date], [Job Title], [New Job Title], [Site Name], [Payroll Contact], [Your Name], [Title], [Company]
Tell them first, then put it in writing
A raise should come from the manager in a conversation, not from HR's mail merge. The email that follows is the written confirmation: exact numbers, effective date, and the first payday the new rate lands. Employees screenshot these emails and check them against their pay stub, so precision matters more than warmth.
Attach or link the formal letter for the personnel file. Our salary increase letter template covers the formal version with signature lines. Many teams generate both from the same record using document templates, which removes the most common error: an email that says one number and a letter that says another.
What to include
- Old and new pay, in the same unit. Don't mix an annual salary with an hourly rate.
- Percentage and dollar amount. People think in both. A 4% increase on $52,000 is $2,080 a year, about $80 per biweekly paycheck before tax.
- Effective date and first pay date. If the effective date falls mid-period, say whether the first check is prorated.
- The reason, in one or two sentences: merit, promotion, market adjustment, cost-of-living or a contractual step.
- Any change in status. A promotion that moves someone from non-exempt to exempt under the Fair Labor Standards Act ends overtime eligibility. Say so plainly.
- Who to contact if the paycheck looks wrong.
Leave out comparisons to coworkers and promises about next year. "We'll look at this again next spring" quickly becomes "you promised me a raise in April."
Timing with payroll and review cycles
The most common complaint is not the size of the raise; it's the raise that doesn't show up. Lock the payroll change before you send the email, and send it at least one full pay period before the effective date. If the change misses a cutoff, tell the employee in advance and confirm the retro payment date.
For annual merit cycles, stagger sends by manager rather than blasting everyone at 9am. Employees compare notes in minutes, and managers need time to have the conversation first. If raises are tied to a review, send the performance review invitation email early enough that conversations finish before payroll cutoff.
Group increases for hourly teams
When a warehouse, contact center or retail chain raises a starting rate, every incumbent in the role needs to know, and some need extra attention. If the new starting rate is $18.00 and a two-year agent earns $18.25, you have a compression problem the email will expose immediately. Fix compression before announcing, even with a small tenure step, or expect a wave of frustrated questions to supervisors.
Send a short individual email or text to each person with their own new rate. A generic "rates are going up" post makes people do math and guess. Keep shift differentials, overtime rules and any attendance bonus terms explicit, since those are where payroll errors show up.
Fairness and legal notes
Pay increases are where pay equity gaps grow or shrink. Before you send raises, run the proposed numbers by gender and race/ethnicity within comparable roles; the Equal Pay Act and Title VII apply to raises just as they do to starting pay. Several states, including California, Colorado, New York and Washington, have pay transparency or equal pay laws that make inconsistent raises harder to defend.
Keep the email and letter in the personnel file. Under the FLSA, employers must keep payroll records, including rates of pay, for at least three years. State rules may require longer, and some states require written notice of pay rate changes; New York, for example, has wage notice rules under its Wage Theft Prevention Act. Check the rules for each state where you have employees.
Mistakes to avoid
- Rounding errors between the email, the letter and payroll. Copy numbers from one source.
- Announcing before the manager talks to the employee.
- Overpraising a small raise. A 2% cost-of-living adjustment described as "exceptional recognition" reads as tone-deaf.
- Bundling a bonus and a raise without separating them. Use a dedicated bonus announcement email so a one-time payment isn't mistaken for a permanent increase.
- Forgetting benefits that key off salary, such as life insurance multiples or 401(k) match caps.
Frequently asked questions
How do I write a salary increase email to an employee?
Confirm the conversation you already had, then list the current and new pay, the percentage and amount, the effective date and the first paycheck that includes it. Add one specific reason and a payroll contact for questions.
What is a salary revision email?
It is another name for a salary increase email, common in India and global companies. It confirms a revised pay figure after an appraisal or market review and usually attaches a formal revision letter.
How do I announce a pay raise to all employees?
Send a short group announcement explaining the change and the effective date, then send each person an individual message with their own new rate. Check for pay compression with longer-tenured staff before you announce.
Should a salary increment email include the percentage?
Yes. Include both the percentage and the dollar amount, plus the new total. It avoids confusion and saves payroll a lot of questions.
How far in advance should I send a salary increase email?
At least one full pay period before the effective date, and after payroll has the change entered. For group hourly increases, a week or more gives supervisors time to answer questions.