This post covers a letter to increase the salary.
In a perfect world, your boss will give you a raise without your asking for it because they know you deserve it.
However, in reality, things aren’t often so straightforward.
According to the U.S Bureau of Labour Statistics Real average hourly earnings decreased by 3.0 percent from September 2021 to September 2022.
The change in real average hourly earnings combined with a 0.9 percent decrease in the average workweek resulted in a 3.8-percent decrease in real average weekly earnings over this period.
On another hand, the U.S. Bureau of Economic Analysis reported that In August 2022, wages in the US rose by 8.57% compared to the same month the previous year.
That trend shows that asking for a raise is not only complicated but also a huge legal responsibility plus it may also be dangerous if you say the wrong thing.
Forget about the trend!
If you strongly believe that your salary is less than what your position is worth, you should write a letter requesting a salary increase, provided you’re able to justify it.
How do you go about that?
Relax here I will take you through;
- What is Letter to increase the salary
- Why Letter to increase the salary is necessary
- Things to consider before asking for a salary increase
- How to write an effective Letter to increase the salary?
- Letter to increase the salary sample
Let’s get started
Related: Letter for promotion request (guide + free samples)
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What is Letter to increase the salary?
A letter to increase the salary is a brief statement of facts written by a worker to the employer for the purpose of asking for a pay raise.
A Letter to increase the salary should be addressed to the person who manages your raises and bonuses.
That may be your supervisor, manager, or the head of your department.
Why Letter to increase the salary is necessary
The following is why you need to write a letter to ask for a salary increase
- A letter serves as a record of the request in the event that it is denied, it may be considered later
- Your boss will take your request more serious
- By presenting your claim in writing, you can avoid stumbling over your words in person.
- Making the request in writing may also be more convenient and pleasant than speaking with your supervisor face-to-face about the pay raise.
- A letter may act as evidence that you have requested a raise.
Things to consider before asking for a salary increase
Here I’m going to share with you things that will determine the fate of your Letter to increase the salary.
The following are the things to consider before asking for a salary increase
No research no right to speak.
Do your homework before writing your pay raise letter, regardless of whether you intend to request a modest or substantial rise.
You can use that information as leverage by asking the HR department how your employer determines compensation hikes.
Additionally, you can learn how much other businesses pay workers who perform the same duties as you.
If the amount you ask for is out of step with the realities of the employment market today, you won’t get very far.
You may learn what a competitive wage is for someone in your position and location by conducting your own thorough research.
When you do the math, you can show your manager that your payment request is supported by actual data rather than just your subjective opinion.
Check the timing before submitting a letter asking for a raise in pay.
For instance, if you are aware that business is booming, your manager is happy with your performance, and enough time has passed (at least a year or more, depending on the corporate culture) since your previous pay increase or your annual review is approaching, then all indicators point to leaving.
In other organizations, raises are announced near the conclusion of the fiscal year or discussed during year-end reviews.
Try to initiate your process before these dates if such is the situation at your organization.
In terms of timing, it’s also advantageous to request a raise soon after finishing a significant project or assignment efficiently.
It might not be the best moment to ask for an unexpected rise if there have been recent layoffs, financial difficulties at the company, or if normal wage increases are part of an annual performance evaluation that is still months away.
Here are a few explanations for why you might not be granted the desired wage increase.
It is insufficient to say that you want a raise in pay because you feel you deserve it. Naturally, your employer would want proof.
Therefore, make a list of specific reasons why you should be granted the pay increase you’re requesting before approaching your employer.
Numbers are powerful, so use them to describe your accomplishments. Examples include money saved, revenue earned, services improved, and responsibilities accepted.
Your request should take into account the value you bring to the role, goals you’ve reached or exceeded, outcomes you’ve delivered, and industry averages based on your job abilities and years of experience, Just like you did in your pay discussions when you applied for the job.
When you feel prepared to respond to challenging inquiries about why you deserve a raise, it is less difficult to overcome anxieties.
Make a list of your accomplishments since your last pay raise by reflecting on your tenure with the company and paying special attention to those that may have boosted the company’s bottom line.
You could wish to include any honors or distinctions you’ve received from the business in the letter.
When detailing these achievements, be very detailed and only highlight the most noteworthy ones.
This will demonstrate to your employers your importance to the organization and the reasons you should be paid more.
The most typical justifications for requesting a pay raise are:
- When your probationary time is up and your company has pledged to increase your pay.
- You’ve been promoted.
- You’ve been given more duties.
- The cost of living in the area where you work has increased.
- You haven’t been given a raise for a while.
- Your pay is less than the going rate in the market.
- Your qualifications and skills have increased.
Don’t be ambiguous or let the firm make the final decision.
Ask for a percentage increase or a fixed monetary amount.
Once more, consider what an acceptable amount would be using your research on pay data, and don’t go far higher than that.
You can use that as a starting point as a merit-based pay boost often amounts to a 3% increase.
Include any data or documentation you believe will support your request.
For instance, if you have completed advanced training or certification, please attach the appropriate documentation.
Such details might greatly improve your chances of receiving the raise you’re requesting.
How to write an effective Letter to increase the salary
A Letter to increase the salary is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the employer’s address, and state that you are writing to request a salary increase and provide the justification for your request. Finish with “Sincerely,” followed by your name and signature.
REMEMBER! the primary goal of your Letter to increase the salary is to ask your boss to increase your salary.
Thus, do the following to write an effective Letter to increase the salary.
- Provide your name, address, and contact information
- Include the date of the letter
- Include the employer’s name, address, and contact information
- Instantly say the purpose of your letter (in the opening paragraph)
- Indicate your position
- Explain the reasons for your request
- Clearly express why you are worthy of the raise
- write the specific amount you are requesting
- state your willingness to negotiate if the company cannot afford to pay you the requested amount
- Attach relevant documentation
- Maintain a professional tone
- Be honest
- Be polite and respectful.
Letter to increase the salary sample
City, State, Zip Code
[Employer’s Street Address]
[Employer’s City, State, and Zip Code]
RE: Request for Salary Increase
Dear [Employer’s Last Name]
It is with great enthusiasm that I’m humbly writing this letter to request for review of my current salary.
[# working years] as an [your position] at [working place] has given me the experience necessary to be ready and equipped to take on new tasks and responsibilities.
I think an analysis of my performance history with the company, my most recent successes, and industry average compensation will show justification for a rise of at least [#%] in my [monthly/yearly] salary.
Since I first joined [name of organization], my role has changed.
Added duties now including [list all added duties]
I have distinguished myself during the past year by achieving the following
- [list all of your artchivements] for example;
- I increased the accounts payable system’s efficiency and helped the business save $50,000 annually.
- I oversaw the new product’s successful launch and contributed to the $100,000 in quarterly sales.
Furthermore, [source] data shows that the average yearly compensation for my position is [$#]. This is more than #% more than the [$#] I currently make. A [#%] pay increase would bring my compensation into line with the region’s and the industry’s standards for the job.
I appreciate you giving this issue your attention. In order to satisfy both my desire and what is best for the business, I am willing to negotiate if you have another figure in mind or a plan to raise my salary.