Free plan template · Word

Annual Increment Planner

An annual increment planner lays out every stage of the yearly appraisal and increment cycle with owners, dates and deliverables, from budget approval to the first revised payroll. HR teams use it to keep managers, finance and leadership on one timeline.

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[Company Logo][Company Name]

ANNUAL INCREMENT PLANNER

Company:: [Company Name]
Cycle:: [FY 20XX–XX]
Increment Effective Date:: [DD/MM/YYYY]
Cycle Owner:: [HR Name]

Cycle Timeline

Phase	Activity	Owner	Start	End	Output	Status
1. Preparation	Freeze employee master data and eligibility list	HR Operations	[DD/MM/YYYY]	[DD/MM/YYYY]	Eligibility list	[Status]
1. Preparation	Market salary review and budget proposal	Comp & Ben / Finance	[DD/MM/YYYY]	[DD/MM/YYYY]	Budget note	[Status]
2. Approval	Management approves budget and increment matrix	[Authorised Signatory]	[DD/MM/YYYY]	[DD/MM/YYYY]	Approved matrix	[Status]
3. Appraisal	Self-appraisal and manager review	Employees / Managers	[DD/MM/YYYY]	[DD/MM/YYYY]	Draft ratings	[Status]
3. Appraisal	Calibration meetings by department	HRBP / Dept Heads	[DD/MM/YYYY]	[DD/MM/YYYY]	Final ratings	[Status]
4. Proposals	Managers enter increment and promotion proposals	Managers	[DD/MM/YYYY]	[DD/MM/YYYY]	Proposal sheet	[Status]
4. Proposals	HR and finance budget check	HR / Finance	[DD/MM/YYYY]	[DD/MM/YYYY]	Approved list	[Status]
5. Release	Manager conversations with employees	Managers	[DD/MM/YYYY]	[DD/MM/YYYY]	Discussion done	[Status]
5. Release	Increment and promotion letters issued	HR	[DD/MM/YYYY]	[DD/MM/YYYY]	Letters	[Status]
6. Payroll	Revised salary and arrears processed	Payroll	[DD/MM/YYYY]	[DD/MM/YYYY]	Revised payslips	[Status]

Communication Plan

Cycle launch email to all employees with key dates.
Manager briefing on rating guidelines and the increment matrix.
Reminder emails three working days before each deadline.
Grievance window of [x] working days after letters are issued.

Post-cycle Review

Deadlines missed and reasons	[Details]
Budget utilisation vs approved	[x]%
Number of grievances raised	[No.]
Improvements for next cycle	[Details]

Prepared by
[HR Name]
Date: [Date]

Approved by
[Authorised Signatory]
[Designation]
Date: [Date]

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What this template includes

Phase-wise timeline from data freeze to letter release
Named owner for every activity
Deliverable or output for each step
Calibration meeting slot before ratings are final
Payroll cut-off date linked to the effective date
Communication plan for employees and managers
Status column for tracking

When to use it

Kicking off the annual appraisal and increment cycle
Aligning finance, HR and business heads on deadlines
Making sure revised salaries reach the right payroll month
Reviewing last year's cycle and fixing delays for the next one

How to customise this template

1Enter dates based on your financial year (April–March for most Indian companies)
2Replace owners with actual names or roles
3Add steps for variable pay or bonus if processed together
4Shade completed rows when tracking progress
5Share a read-only copy with all approvers

HR tips

Work backwards from the payroll cut-off date to set every other deadline
Leave buffer for calibration; it often takes longer than planned
Train managers on the increment matrix before they enter proposals
Plan employee conversations before letters are emailed

For HR & hiring managers

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Frequently asked questions

When do most Indian companies give increments?+

Many follow the April–March financial year and make increments effective from April or July, but the timing is set by each company's own policy.

How long does an appraisal and increment cycle take?+

It depends on company size and approval layers. Plan enough time for self-review, manager review, calibration, budget approval and letter release.

What is a calibration meeting?+

It is a meeting where managers and HR compare ratings across teams to ensure the same standard is applied before increments are finalised.

All 50 increment, promotion & career →

[Company Logo][Company Name]

SALARY INCREMENT LETTER

Ref. No.:: [Reference Number]
Date:: [Date]

To,
[Employee Name]
Employee ID: [Employee ID]
[Designation], [Department]
[Work Location]

Subject: Increment in Salary

Dear [Employee Name],
Congratulations! In recognition of [Reason – e.g. your successful confirmation / completion of the Certification Name certification / your contribution to Project Name], we are happy to grant you an increment in your salary.

Particulars	Details
Current Gross Monthly Salary	₹[Amount]
Increment Amount (per month)	₹[Amount]
Increment Percentage	[Percentage]%
Revised Gross Monthly Salary	₹[Amount]
Revised Annual CTC	₹[CTC]
Effective From	[Effective Date]

The increment will be distributed across your salary components as per company policy, and a revised salary breakup is available from HR on request. Statutory contributions such as PF will be adjusted in line with the revised Basic.

Letter · Word

Salary Increment Letter

Download .docx

[Company Logo][Company Name]

INCREMENT RECOMMENDATION FORM

Company:: [Company Name]
Increment Cycle:: [YYYY–YY]
Effective Date:: [DD/MM/YYYY]
Department:: [Department]

Merit Increase Guideline

Final Rating	Compa-ratio below 0.90	Compa-ratio 0.90–1.10	Compa-ratio above 1.10
5 – Outstanding	[%–%]	[%–%]	[%–%]
4 – Exceeds	[%–%]	[%–%]	[%–%]
3 – Meets	[%–%]	[%–%]	[%–%]
2 – Needs Improvement	[%–%]	[%–%]	[%–%]
1 – Unsatisfactory	Nil	Nil	Nil

Recommendations

Emp. ID	Employee Name	Designation	Final Rating	Current CTC (₹)	Compa-ratio	Recommended %	Increment (₹)	Revised CTC (₹)	Remarks
[Employee ID]	[Employee Name]	[Designation]	[Rating]	[CTC]	[Ratio]	[%]	[Amount]	[CTC]	[Remarks]
[Employee ID]	[Employee Name]	[Designation]	[Rating]	[CTC]	[Ratio]	[%]	[Amount]	[CTC]	[Remarks]
[Employee ID]	[Employee Name]	[Designation]	[Rating]	[CTC]	[Ratio]	[%]	[Amount]	[CTC]	[Remarks]
[Employee ID]	[Employee Name]	[Designation]	[Rating]	[CTC]	[Ratio]	[%]	[Amount]	[CTC]	[Remarks]

Deviations from Guideline

Form · Word

Increment Recommendation Form

Download .docx

[Company Logo][Company Name]

INCREMENT APPROVAL FORM

Form No.:: [Reference Number]
Appraisal Cycle:: [FY 20XX–XX]
Date:: [Date]

A. Employee Details

Employee Name	[Employee Name]
Employee ID	[Employee ID]
Designation	[Designation]
Department	[Department]
Grade / Band	[Grade]
Date of Joining	[Date of Joining]
Work Location	[Work Location]
Reporting Manager	[Reporting Manager]

B. Increment Proposal

Particulars	Current (₹ p.a.)	Proposed (₹ p.a.)	Change (%)
Basic Salary	[Amount]	[Amount]	[x]%
HRA	[Amount]	[Amount]	[x]%
Special Allowance	[Amount]	[Amount]	[x]%
Employer PF Contribution	[Amount]	[Amount]	[x]%
Total CTC	[CTC]	[Amount]	[x]%

Type of Increment: Annual Merit / Off-cycle / Market Correction / Special
Performance Rating	[Rating]
Effective Date	[DD/MM/YYYY]
Arrears Payable: Yes / No – Amount ₹ [Amount]
Position in Salary Band after Increment: Below Min / Within / Above Max

Form · Word

Increment Approval Form

Download .docx

[Company Logo][Company Name]

INCREMENT CALCULATION SHEET

Company:: [Company Name]
Appraisal Cycle:: [FY 20XX–XX]
Effective Date:: [DD/MM/YYYY]
Prepared by:: [HR Name]

Part 1 – CTC Revision Summary

Emp ID	Employee Name	Grade	Rating	Current CTC (₹)	Increment %	Increase (₹)	New CTC (₹)
[Employee ID]	[Employee Name]	[Grade]	[Rating]	[Amount]	[x]%	[Amount]	[Amount]
[Employee ID]	[Employee Name]	[Grade]	[Rating]	[Amount]	[x]%	[Amount]	[Amount]
[Employee ID]	[Employee Name]	[Grade]	[Rating]	[Amount]	[x]%	[Amount]	[Amount]
[Employee ID]	[Employee Name]	[Grade]	[Rating]	[Amount]	[x]%	[Amount]	[Amount]

Part 2 – Revised Monthly Structure

Emp ID	New Basic (₹)	New HRA (₹)	Special Allowance (₹)	Monthly Gross (₹)	Employer PF (₹)	ESI Applicable (Y/N)	Est. In-hand (₹)
[Employee ID]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]	[Y/N]	[Amount]
[Employee ID]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]	[Y/N]	[Amount]
[Employee ID]	[Amount]	[Amount]	[Amount]	[Amount]	[Amount]	[Y/N]	[Amount]

Part 3 – Arrears Computation

Template · Word

Increment Calculation Sheet

Download .docx

[Company Logo][Company Name]

INCREMENT MATRIX

Company:: [Company Name]
Applicable Cycle:: [FY 20XX–XX]
Effective Date:: [DD/MM/YYYY]
Approved Budget:: [x]% of eligible payroll

1. Merit Increase Grid (% of Fixed CTC)

Performance Rating	Compa-ratio below 0.85	Compa-ratio 0.85–0.95	Compa-ratio 0.95–1.05	Compa-ratio 1.05–1.15	Compa-ratio above 1.15
5 – Outstanding	[x–y]%	[x–y]%	[x–y]%	[x–y]%	[x–y]%
4 – Exceeds Expectations	[x–y]%	[x–y]%	[x–y]%	[x–y]%	[x–y]%
3 – Meets Expectations	[x–y]%	[x–y]%	[x–y]%	[x–y]%	[x–y]%
2 – Partly Meets	[x–y]%	[x–y]%	[x–y]%	[x–y]%	[x–y]%
1 – Below Expectations	Nil	Nil	Nil	Nil	Nil

2. Definitions

Compa-ratio = current fixed CTC ÷ midpoint of the employee's salary band.
Fixed CTC excludes variable pay, bonus and one-time payments.
Rating = final calibrated rating approved by the appraisal committee.

3. Application Rules

Template · Word

Increment Matrix

Download .docx

[Company Logo][Company Name]

INCREMENT BUDGET SHEET

Company:: [Company Name]
Cycle:: [FY 20XX–XX]
Version:: [v1.0] dated [DD/MM/YYYY]
Owner:: [HR Name]

A. Pool Summary

Pool	Basis	% of Eligible Payroll	Amount (₹ p.a.)
Merit Increment Pool	Rating-based increments	[x]%	[Amount]
Promotion Pool	Promotion increases	[x]%	[Amount]
Market Correction Pool	Below-band and retention cases	[x]%	[Amount]
Central Contingency	Held by HR Head	[x]%	[Amount]
Total Approved Budget		[x]%	[Amount]

B. Department Allocation and Utilisation

Department	Eligible HC	Eligible Payroll (₹)	Allocated (₹)	Utilised (₹)	Balance (₹)	Utilisation %
[Department]	[No.]	[Amount]	[Amount]	[Amount]	[Amount]	[x]%
[Department]	[No.]	[Amount]	[Amount]	[Amount]	[Amount]	[x]%
[Department]	[No.]	[Amount]	[Amount]	[Amount]	[Amount]	[x]%
[Department]	[No.]	[Amount]	[Amount]	[Amount]	[Amount]	[x]%
Total	[No.]	[Amount]	[Amount]	[Amount]	[Amount]	[x]%

C. Total Cost Impact

Template · Word

Increment Budget Sheet

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[Company Logo][Company Name]

SALARY REVISION LETTER

Ref. No.:: [Reference Number]
Date:: [Date]

Private and Confidential
To,
[Employee Name]
Employee ID: [Employee ID]
[Designation], [Department]

Subject: Revision of Salary

Dear [Employee Name],
We are pleased to inform you that the management has reviewed your compensation and approved a revision of your salary. Your annual Cost to Company is revised from ₹[Previous CTC] to ₹[CTC], effective [Effective Date].

Component	Previous Monthly (₹)	Revised Monthly (₹)
Basic Salary	[Amount]	[Basic Salary]
House Rent Allowance	[Amount]	[HRA]
Special Allowance	[Amount]	[Amount]
Gross Salary	[Amount]	[Amount]
Employer PF	[Amount]	[Amount]
Gratuity Provision	[Amount]	[Amount]
Monthly CTC	[Amount]	[Amount]
Annual CTC	[Previous CTC]	[CTC]

The revised salary will be reflected in your payroll for [Month YYYY]. Arrears from [Effective Date] to [Date], if any, will be paid along with the salary of [Month YYYY], subject to applicable statutory deductions.

Letter · Word

Salary Revision Letter

Download .docx

[Company Logo][Company Name]
PROMOTION LETTER
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Employee Name]
Employee ID: [Employee ID]
[Designation], [Department]
[Work Location]
Subject: Promotion to [New Designation]
Dear [Employee Name],
We are delighted to inform you that, in recognition of your performance and contribution, you have been promoted to the position of [New Designation] in Grade [New Grade], with effect from [DD/MM/YYYY].
Consequent to this promotion, your annual Cost to Company (CTC) has been revised to ₹[Revised CTC] (Rupees [Amount in Words] only). The component-wise breakup is given in the enclosed Annexure. Statutory deductions such as PF and professional tax will apply as per law.
Letter · Word
Promotion Letter
Download .docx

Annual Increment Planner

Preview of the plan

Cycle Timeline

Communication Plan

Post-cycle Review

What this template includes

When to use it

How to customise this template

HR tips

Hire top talent from BetterJobs

Frequently asked questions

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