Salary increase notification email template

When to use this template

Raises should be delivered in a conversation first, usually by the manager, then confirmed in writing. This email is the written confirmation. It states the old and new pay, the percentage, the effective date, when it will show on a paycheck, and, most important, why. Employees remember the reason long after they forget the number.

Whether the increase is a merit raise, a market adjustment, a promotion, or a cost of living increase, say which. Specific recognition makes a modest raise feel meaningful, and a generic note makes a generous one feel routine. Our salary bands guide explains how to place increases within a range, and compensation management software can generate these letters during a merit cycle.

The email templates

Copy either version, replace everything in [brackets], and read it once out loud before you send it. If it doesn't sound like you, change it.

Hi [Employee first name],

Following our conversation, I'm happy to confirm your salary increase.

Current salary: $[Amount] per year
New salary: $[Amount] per year ([Percentage] increase)
Effective date: [Date]
First paycheck with the new rate: [Pay date]

This increase reflects [specific contributions, such as leading the transition to our new scheduling system and consistently strong customer feedback]. Thank you for the work behind it.

If you have any questions about your pay, please ask me or [HR contact].

[Manager name]
[Title]

Hi [Employee first name],

Your hourly rate is increasing from $[Old rate] to $[New rate], effective [Date]. You will see the new rate on your paycheck dated [Pay date].

This is a [market adjustment / annual increase] based on [reason, such as our annual review of pay for this role against local rates].

Thank you for everything you do.

[Manager name]

Subject lines to try

The subject line decides whether the email is opened today or next week. Keep it specific and short enough to read on a phone.

• Your salary increase, effective [Date]
• Your new pay rate starting [Date]
• Confirming your raise
• Pay update for [Year]
• Good news about your pay

How to personalize it

• Have the conversation before the email arrives.
• Show the old rate, new rate, and percentage.
• Give the reason, tied to specific work.
• Name the first paycheck that will reflect the change.

Mistakes to avoid

• Comparing the raise to coworkers' raises.
• Promising future increases.
• Sending a raise letter with the wrong numbers. Have payroll check it.
• Calling an inflation adjustment a merit raise, or the reverse.

Legal and compliance notes

Several states require written notice of pay changes. New York's Wage Theft Prevention Act requires written notice of a change in pay rate unless it's shown on the next wage statement, and California requires notice to nonexempt employees within seven days of changes not shown on the wage statement. Keep raise decisions consistent with your pay equity practices, since pay differences must be explained by job-related factors under the Equal Pay Act and state laws.

This is general information for US employers, not legal advice. Laws change and vary by state and city, so confirm the current rules or talk to employment counsel before you rely on them.

When to send it

Send the written confirmation the same day as the conversation. Make sure the effective date gives payroll enough time to process the change before the cutoff for the paycheck you named.

Before you hit send

Run through this quick check. It takes a minute and catches most of the mistakes that cause follow-up emails.

• Payroll has checked every number in the email against the system.
• The effective date leaves enough time before the payroll cutoff.
• State notice rules for pay changes were checked for each affected state.
• The email doesn't mention anyone else's pay.
• Tax treatment, such as supplemental withholding, is explained in plain words.

Frequently asked questions