Salary Increase Letter
This Salary Increase Letter confirms the increase of an employee’s salary.
5.0 (3 reviews)
Last updated December 20, 2024
Under 5 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
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.
The Legal Risk Score of a Salary Increase Letter Template
Our legal team have marked this document as low risk considering:
- The document does not specify the exact amount of the salary increase, which could lead to misunderstandings or disputes about the terms agreed upon.
- Without specific effective dates mentioned for the salary increase, there may be confusion about when the changes are supposed to be implemented, potentially affecting financial planning.
- The document mentions that all other terms and conditions of the employment agreement will remain the same, but does not clarify what these are, which might leave room for oversight or assumptions about important employment conditions.
Salary Increase Letter Checklist
Complete your free Salary Increase Letter with our checklist
Confirm Details:
Ensure that the specific details such as the amount of the salary increase and the effective date are clearly mentioned in the document before sending it to the employee.
Document Distribution:
Distribute the completed salary increase letter to the relevant employee and keep a copy in the employee’s personnel file for record-keeping.
Review Compliance:
Check that the superannuation contributions mentioned are in line with the Superannuation Guarantee (Administration) Act 1992, as stated in the document.
Follow-Up Communication:
Schedule a meeting or a follow-up communication with the employee to discuss the new changes and address any questions or concerns they might have regarding the salary increase.
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
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