Increment and Appraisal Letter

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What is

Increment and Appraisal Letter

An increment and appraisal letter are issued by the employer to its employee informing the employee of the employer’s decision to elevate the employee to a higher position or any increase paid to the emoluments of the employee in lieu of performance. Such a letter is usually issued pursuant to an appraisal of the employee done by the employer and informs the employee of the outcome of the appraisal.  It may also lay down the amendments and changes, if any, in the terms and conditions of the employment.


1. What is an increment letter?

Increment Letter is a document that states the salary increment given by the employer to the employee. An increment letter is usually given after the Performance appraisal cycle is completed, or when employee performance is good, or as per the organization policy. An increment letter is also known as Appraisal Letter.


2. What does an increment in salary mean?

Salary increment is measured as a percentage of an employee's overall base pay. It is usually a percentage of the employee's annual salary. Increments are used by employers to increase or decrease base salary, as well as to grant incentives.