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Increment Letter Generator

A salary revision letter with an old vs new pay table, % increase, effective date and arrears worked out.

Letterhead & signatory
PNG or JPG. Kept on this device for every document.
The signatory’s signature — a PNG with a transparent background looks best. Kept on this device.
Optional stamp or seal, printed next to the signature. Kept on this device.
Letter details
Counts up for each new letter.
Date style, greeting, sign-off and currency.
Tone
Employee
Used in the address and the formal greeting.
Review
e.g. FY 2025-26 or the 2026 review
A sentence or two about the year, printed after the rating.
Current and revised pay (a year)

Enter yearly amounts. Tick “Variable” for performance pay or bonuses, so they are left out of the monthly arrears. The table, totals and percentages are worked out for you.

Letter text
Letter text

Merge fields — click one to insert it at the cursor

    Enter starts a new paragraph. A paragraph that starts with “• ” or “1. ” prints as a list; Heading keeps a heading with the paragraph after it. Pasted text loses its formatting. Merge fields such as {{employee_name}} fill in from the form — in bulk mode, from each CSV row.

    Look
    Changes with the letter format.
    Letterhead style
    Bulk increment letters from a CSV — one letter per row in a ZIP

    Each row becomes a letter with the letterhead, signatory, format, tone and letter text above; columns you leave out keep the form’s values, except the person’s details. Columns: employee_name, employee_id, designation, department, current_ctc (a year), revised_ctc (a year), current_variable (optional, inside the CTC), revised_variable (optional), performance_rating, effective_date. Optional: title (Ms, Mr, Mrs, Mx, Dr) and ref_no (otherwise numbers count up from the reference above). Dates as 2026-11-02 or 02/11/2026 (month first for the US format); put “|” between address lines.

    Drop a CSV file here or click to chooseComma, semicolon or tab separated. Nothing is uploaded.

    Saved in this browser only

    The PDF embeds Noto Sans, so ₹, £ and accented names print exactly and the text stays selectable. The Word file opens in Word, Google Docs and LibreOffice.

    Delete saved increment letter?

    Runs entirely in your browser. Nothing you enter or upload is sent to a server.

    Increment letter generator with the increase and arrears worked out

    This free increment letter generator writes a salary revision letter from a simple table: each pay component’s current and revised yearly amount. It totals both columns, works out the increase in rupees and as a percentage — for every component and overall — and puts the table in the letter with the effective date, the review period, the performance rating and an optional note.

    When a revision is backdated, it also calculates the arrears: the monthly difference in fixed pay times the months from the effective date to the payroll month that pays them, with a part first month pro-rated by days. Variable pay is kept out of the arrears.

    Choose a formal or warm tone and the India, US or UK format, then download a PDF or Word file — or one letter per employee from a CSV after the appraisal cycle. It all happens in your browser; nothing is uploaded.

    How to use the Increment Letter Generator

    1. Add your letterhead and signatory, then the reference number, date, format and tone.
    2. Enter the employee’s name, ID, designation and department.
    3. Under Review, fill in the review period, rating, effective date and, if you like, a note on the year.
    4. Enter each component’s current and revised yearly amount; tick “Variable” for bonus-type pay.
    5. If the revision is backdated, tick “Arrears are due” and pick the month whose salary will include them.
    6. Check the preview, adjust any wording under Letter text, and download the PDF or Word file.

    Increment Letter Generator features

    Old vs new pay table

    Current, revised, increase and change for each component, with a bold total row — placed wherever {{revision_table}} sits in the text.

    Exact percentages

    Increase % = (revised − current) ÷ current × 100, rounded to two decimals; a component that is new shows “new”.

    Arrears that follow the dates

    Whole months plus a pro-rated first month, on fixed pay only.

    Ratings and notes

    Mention the rating and a line about the year, or leave them out.

    Bulk after appraisals

    A CSV with current and revised CTC (and variable pay) per person becomes a ZIP of letters.

    Private by design

    Pay data never leaves your device; letters are marked confidential.

    How the increase and arrears are calculated

    The sample letter revises a CTC of ₹10,00,000 to ₹11,40,000. The increase is ₹1,40,000, and 1,40,000 ÷ 10,00,000 × 100 = 14%. Component by component, basic rises 12.5% (₹4,80,000 → ₹5,40,000), special allowance 20.83% (₹1,44,000 → ₹1,74,000), employer PF stays at ₹36,000 (0%) and target variable pay rises 20%. Check any single figure with the percentage change calculator.

    Fixed pay goes from ₹9,00,000 to ₹10,20,000, which is ₹10,000 more a month. The revision is effective 1 April 2026 but reaches payroll in October, so arrears cover April to September: 6 × ₹10,000 = ₹60,000, paid with the October salary. Had it taken effect on 16 April, April would count for 15/30 of a month and the arrears would be ₹55,000.

    What to include in an increment letter

    • The review period and the date the new pay takes effect.
    • Old and new CTC (or salary), the amount of the increase and the percentage.
    • A component-wise table so the employee can see what changed in basic, allowances and variable pay.
    • Arrears, if the change is backdated, with the period and the payroll month.
    • A line that all other terms stay the same, and a request to keep the letter confidential.

    India, US and UK practice

    In India, annual increments usually take effect from 1 April, and letters often arrive months later with arrears. Arrears are taxed in the year you receive them; relief for arrears that relate to earlier years may be available — ask a tax adviser, and see the effect on take-home pay with the in-hand salary calculator. A higher basic also raises PF (up to the ₹25,000 wage ceiling) and gratuity, which is why CTC can grow faster than take-home pay.

    In the US, pay rises are typically stated as a new annual salary or hourly rate. In the UK, a change to pay is a change to the written statement of particulars, and the employer must confirm it in writing within one month (Employment Rights Act 1996, s.4) — a salary revision letter does that. Figures here are estimates, not tax or legal advice.

    Common mistakes

    • Quoting only the new CTC — employees compare the percentage and the monthly difference.
    • Including variable pay in arrears, which overpays when the bonus is paid separately.
    • Forgetting the effective date, so payroll and the employee read the letter differently.

    Increment Letter Generator FAQ

    How do I write a salary increment letter?

    State the review period, effective date, old and new pay, the increase in amount and percentage, any arrears, and that other terms are unchanged. This increment letter generator builds the table and the wording for you.

    How is the increment percentage calculated?

    Increase % = (new CTC − old CTC) ÷ old CTC × 100. From ₹10,00,000 to ₹11,40,000 that is 1,40,000 ÷ 10,00,000 = 14%.

    How are salary arrears calculated?

    Monthly increase in fixed pay × months from the effective date to the payroll month that pays them. A part first month is pro-rated by calendar days. Variable pay is left out.

    Is an appraisal letter the same as an increment letter?

    Often yes — an appraisal letter reports the review outcome and the new pay. If the role changes too, use the promotion letter generator.

    Can I create increment letters for the whole team?

    Yes. Use the bulk section with a CSV of current and revised CTC (and variable pay) per employee to get a ZIP of letters.

    Is the salary data stored online?

    No. Everything runs in your browser and is saved only on this device.

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