Performance

Raise Approval Letter Email Template

Formally confirm a salary increase with the new compensation details, effective date, and rationale.

When to use this template

You have approved a salary increase for an employee and need to formally communicate the new compensation, effective date, and the reasons behind the raise.

Example subject line

Salary Increase Confirmation — New Compensation Effective May 1, 2026

Tips for writing this email

  • State the new salary, the previous salary, and the percentage increase clearly so there is no ambiguity about the compensation change.
  • Include the effective date and confirm when the new amount will first appear on their paycheck.
  • Tie the raise to specific performance achievements, expanded responsibilities, or market adjustments to reinforce the connection between performance and reward.
  • Express confidence in the employee's continued contributions and mention any future growth opportunities that align with their career goals.

What to avoid

  • Do not communicate a raise verbally without following up in writing — employees need a documented record for their personal files.
  • Avoid burying the raise amount in a long paragraph — lead with the number and make it easy to find.
  • Do not present the raise as a favor or act of generosity — frame it as a recognition of earned value and contribution.
  • Avoid discussing the raise in a group setting or CC-ing people who should not have access to compensation details.

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Frequently Asked Questions

Should a salary increase be communicated in writing?

Always. After sharing the news verbally, send a formal written letter documenting the new salary, effective date, and rationale. This serves as an official record for both the employee and payroll.

What should a raise approval letter include?

The previous salary, new salary, percentage increase, effective date, when the new amount will first appear on the paycheck, and the performance achievements or market adjustments that justified the raise.

How do I tie a raise to performance rather than making it feel like a favor?

Reference specific accomplishments, metrics, or expanded responsibilities. Frame the raise as recognition of earned value, not generosity. This reinforces the connection between performance and compensation.

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