Compensation Increase Letter

A compensation increase letter is a formal document used by employers to notify an employee of a salary adjustment. This adjustment can be based on multiple factors such as performance, tenure, company growth, or market benchmarks. The letter typically outlines the new salary amount, the effective date of the change, and a brief explanation of the reasons behind the increase. Additionally, employers often use this opportunity to express appreciation for the employee’s contributions and reinforce their commitment to fair compensation practices.