- Aon's survey of more than 1,400 organisations projects average salary increases of 9.1 percent in India in 2026, up from an actual 8.9 percent in 2025, with overall attrition down to 16.2 percent
- Deloitte's India Talent Outlook 2026 also puts projected pay increases at 9.1 percent for 2026 against 9.0 percent in 2025
- For central government staff, Rule 10 of the CCS (Revised Pay) Rules 2016 grants the annual increment on either 1 January or 1 July, and the Eighth Central Pay Commission was constituted by a Gazette Resolution dated 3 November 2025 with 18 months to report.
What Is a Salary Increment Letter?
A salary increment letter is a formal written record of a pay rise. Employers issue it to confirm a revised salary after an appraisal, while employees write one to request a raise. It states the reason, the revised amount or percentage sought, and the date the new salary takes effect.
The letter is sometimes called an appraisal letter or a salary revision letter. In most Indian companies it is issued at the start of the financial year or after a quarterly review, once an employee has met the targets set under company policy.
There are two directions the letter can travel. An employee writes to a manager or the HR head to request a review of pay. An employer writes to the employee to confirm the revised figure. Both versions are covered below, with a format you can adapt.
Experience Letter Format and SamplesRead →How Do You Write a Salary Increment Letter?
Keep the letter short, polite and specific. Open with your role and tenure, set out measurable achievements, state the percentage or amount you are asking for, and justify it with results or market data. Close with a request for a meeting. Avoid complaints, ultimatums and comparisons with colleagues.
A raise request that is refused is not wasted. A written, dated letter creates a record your manager can reopen at the next review cycle, which is why the tone matters more than the length.
- Your name, designation and employee code
- Your address and contact details
- The date of the letter
- The name and designation of the person you are addressing
- The company or organisation name
- A salutation, such as Dear Mr or Dear Ms followed by the surname
- The purpose of the letter, stated in the first line
- Your achievements, with numbers wherever possible
- The percentage or amount of increment you are requesting
- Your justification, including added responsibilities or market benchmarks
- A closing line requesting a review or a meeting
- Your signature, name and designation
What Format Should an Employee Increment Letter Follow?
Use a standard business letter layout. Sender block, date, recipient block, subject line, salutation, three short paragraphs covering purpose, evidence and request, then a courteous close with your signature. One page is enough. Send it by email to your manager and copy HR so the request is on record.
Sample layout for an employee requesting a raise:
- Name, address, contact number and email id
- Date
- To the concerned person, company name, city and state
- Subject: Request for salary revision
- Dear Mr or Ms surname
- I am writing to request a review of my salary. I have worked as designation for number of years at company name.
- Paragraph two: your accomplishments, performance ratings, new skills and added responsibilities.
- Paragraph three: the increment percentage you are seeking and why it is justified.
- I would welcome the chance to discuss this with you. Thank you for your consideration.
- Sincerely, your name and designation
What Should an Employer Increment Letter Include?
An employer issued increment letter confirms the revised pay. It should carry the company letterhead, the employee name and code, the reason for the revision, the old and new salary, the effective date, a note that other terms of employment stay unchanged, and the signature of an authorised signatory.
Many employers attach a revised salary breakup showing basic pay, allowances, employer provident fund contribution and gross cost to company, so the employee can see how the increase is split across components rather than only the headline figure.
- Company letterhead, reference number and date
- Employee name, designation, department and employee code
- A line stating the revision follows the annual or mid year performance review
- Existing salary and revised salary, annual or monthly, stated clearly
- The effective date of the revised salary
- A revised salary breakup annexure where applicable
- A confirmation that all other terms and conditions of employment remain unchanged
- Signature, name and designation of the authorised signatory
How Much Increment Can You Expect in 2026?
Aon projects an average salary increase of 9.1 percent across India in 2026, against an actual 8.9 percent in 2025, based on more than 1,400 organisations across 45 industries. Deloitte reports the same 9.1 percent projection. Real estate, non banking finance and pharmaceuticals lead, while technology services trail.
| Sector (India, 2026) | Projected Average Increment 2026 |
|---|---|
| All India average | 9.1% |
| Real estate and infrastructure | 10.2% |
| Non banking financial companies | 10.1% |
| Engineering design services | 9.9% |
| Chemicals | 8.3% |
| Life insurance | 8.2% |
| Technology consulting and services | 6.6% |
Aon also reported that overall attrition fell to 16.2 percent in 2025, close to pre pandemic levels. A cooler job market means a written, evidence backed request matters more than the threat of leaving.
How to Write a Formal LetterRead →When Is an Increment Given Under Government Rules?
For central government employees, Rule 10 of the CCS (Revised Pay) Rules 2016 grants the annual increment on either 1 January or 1 July, depending on the date of appointment, promotion or financial upgradation. A minimum of six months qualifying service is required, and the next increment accrues only after a full year.
The Department of Expenditure office memorandum of 28 November 2019 clarifies that staff appointed or promoted between 2 January and 1 July draw the increment on 1 January, and those appointed or promoted between 2 July and 1 January draw it on 1 July.
The Department of Personnel and Training increment guidance note adds that training undergone before formally joining a post counts as duty for increment purposes, and that an increment falling due while an employee is on earned or commuted leave is paid on rejoining, without the increment date itself shifting.
Central pay is set for a wider review. The Gazette Resolution of 3 November 2025 constituted the Eighth Central Pay Commission under Justice Ranjana Prakash Desai, with Prof. Pulak Ghosh as part time member and Pankaj Jain as member secretary. The commission has 18 months from its constitution to submit recommendations covering pay, allowances, gratuity and pension.