Enter employee, old and new CTC, and effective date to generate a formatted Indian salary increment letter — the hike percentage and CTC breakup are calculated automatically.
Built for appraisal season at Indian tech companies — covers annual, off-cycle, and promotion-linked revisions.
CTC is annual, in ₹. The letter preview updates as you type.
40% is the common default; HRA is fixed at 50% of Basic
Increment
0%
₹0/year more, ₹0/month more
Your Company Pvt. Ltd.
Dear Priya Sharma,
Subject: Revision of Compensation – Annual Performance Appraisal
We are pleased to inform you that your compensation at Your Company Pvt. Ltd. has been revised following your annual performance appraisal, effective the date you select.
Your Cost to Company (CTC) is revised from ₹0 to ₹0 per annum, an increase of 0% (₹0 per year). The revised structure is as follows:
| Component | Monthly (₹) | Annual (₹) |
|---|---|---|
| Basic Pay | 0 | 0 |
| House Rent Allowance (HRA) | 0 | 0 |
| Special Allowance | 0 | 0 |
| Total CTC | 0 | 0 |
All other terms of your employment continue to apply as per your existing appointment letter unless stated otherwise above.
We appreciate your contributions and look forward to your continued growth with Your Company Pvt. Ltd..
Sincerely,
Your Company Pvt. Ltd.
HR Department
This is a starter draft, not a legal document — have HR or legal review it against your own appointment letter and policy before it's signed.
An appraisal conversation states a percentage; the increment letter is what actually changes the CTC your payroll runs against from the effective date. Work out the exact percentage first with the salary hike calculator, then use this generator to put the revised figure in writing with a Basic/HRA breakup, not just a verbal number. If the increment crosses the ₹15,000/month PF wage ceiling on Basic + DA, check the PF & ESI calculator before assuming the deduction scales with the raise. Once signed, Clan's payroll plans carry the revised CTC into the very next payroll run, so it never has to be re-typed.
No single central law names a "salary increment letter" as mandatory by that title. But once compensation changes, it should be documented in writing — it updates the CTC your payslips, PF wages, and any future full and final settlement are calculated against, and a verbal revision with no paper trail is a common source of later payroll disputes.
Increment % = ((New CTC − Old CTC) ÷ Old CTC) × 100, calculated on annual CTC, not in-hand pay — the same formula the salary hike calculator uses. This generator computes it automatically from the old and new CTC you enter and states it in the letter.
Not proportionally. PF is calculated on Basic + DA, not full CTC, and many employers restrict the mandatory 12% employee contribution to the ₹15,000/month statutory wage ceiling once Basic + DA crosses it. So a CTC increment doesn't always move the PF deduction by the same percentage — check the PF & ESI calculator against the revised Basic figure rather than assuming it scales.
This generator has an optional new-designation field for exactly that combined case — leave it blank for a pure compensation revision, or fill it in when a promotion accompanies the increment. If reporting line, location, or role scope change materially, treat it as an update to the employee's appointment terms as well, not just a pay change.
The probation confirmation letter is issued once, when probation ends, and changes employment status from probationary to permanent — any CTC revision there is incidental to that status change. This increment letter is used repeatedly through an employee's tenure, typically at an annual or off-cycle appraisal, and only revises compensation (and optionally designation) without touching employment status.
Yes. Use the "Print / Save as PDF" button, which opens your browser's print dialog — choose "Save as PDF" as the destination to get a PDF copy of just the formatted letter, with the form and page navigation left out.
