Salary Increase Letter

This letter officially documents the employer increasing an employee’s income. As an employer, it is wise to have this change to remuneration made in written form, especially with regards to the terms that both parties have agreed to. 

We recommend reviewing pay on a yearly basis, accounting for matters such as business performance, individual performance, inflation, and industry wage comparisons. It is also important to review wages whenever the Fair Work Commission announces an increase in the minimum wage or in a relevant award. The only requirement here is to be in line with the minimum wage, but such shifts may also affect the expectations of employees who are paid above the minimum wage.

This letter is intended to amend the contract only with regards to salary increase. For a broader amendment letter, see Letter to Amend Employment Agreement.

Employers cannot unilaterally amend agreements, or force employees to accept such amendments. Read the following article for more information.

Use this Salary Increase Letter if:

• You wish to formally establish an increase to an employee’s salary
• You wish to notify the employee of the reasons for the salary increase
• You want to inform the employee of the details of the salary increase. Including the start date, new amount and superannuation details.

What does the Salary Increase Letter cover?

• Notifies the employee of the reason for the salary increase
• Effective date of new salary
• New salary value
• Whether superannuation contributions are included in the salary rise

Other documents you may need:

• How Often Is An Employee Entitled To A Pay Rise?
• Increasing Your Employees’ Pay: What You Need to Know