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Appraisal Letter Template for IT Company

An IT company appraisal letter informs a software professional of the outcome of the annual or mid-year performance review. It records the performance rating, revised fixed pay and target variable, any band or grade change, and highlights delivery, client feedback and skill certifications that drove the decision.

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[Company Logo][Company Name]

ANNUAL PERFORMANCE APPRAISAL LETTER

Ref. No.:: [Reference Number]
Date:: [Date]
Employee ID:: [Employee ID]
Classification:: Strictly Confidential

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

Subject: Performance Appraisal and Compensation Revision – [Review Period]

Dear [Employee Name],

Thank you for your contribution during the review period [Review Period]. Based on your performance review and the calibration process, your overall performance rating is [Rating].

Your manager has specifically recognised your work on [Project / Client Name], including [Key Achievement, e.g. on-time release of the payments module and positive client feedback], and your completion of [Certification / Skill].

Revised Compensation

Component	Current Annual (₹)	Revised Annual (₹)
Fixed Pay	[Amount]	[Amount]
Employer PF and Gratuity	[Amount]	[Amount]
Target Variable Pay	[Amount]	[Amount]
Total CTC	[Amount]	[CTC]

The revised compensation is effective from [Effective Date]. A detailed breakup is enclosed as Annexure A.

Promotion (if applicable): In recognition of your consistent performance, you are promoted to [New Designation], grade [New Grade], with effect from [Effective Date].

Focus Areas for the Coming Cycle

[Focus Area 1, e.g. take ownership of code reviews for the module]
[Focus Area 2, e.g. complete cloud architecture certification]
[Focus Area 3, e.g. mentor two new team members]

All other terms of your employment remain unchanged. Compensation details are confidential and should not be discussed with colleagues.

We look forward to your continued growth with [Company Name].

Warm regards,

For [Company Name]
[Authorised Signatory]
Human Resources

Received by
[Employee Name]
Date: [Date]

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What this template includes

Review period and final calibrated rating
Revised CTC table showing old versus new fixed and variable
Grade or designation change if promoted
Effective date of revision
Specific recognition, for example project delivery or client appreciation
Focus areas for the next cycle, including skills to build

When to use it

Communicating annual appraisal outcomes after calibration
Issuing a mid-cycle correction for a high performer
Announcing a promotion with a grade change
Revising pay after an employee earns a key certification or moves to a new tech stack

How to customise this template

1Insert your rating scale labels (for example Exceeds, Meets)
2Fill the CTC revision table from your compensation sheet
3Add one or two specific achievements from the review form
4List focus areas such as cloud certification or leading a module
5Remove the promotion paragraph if no grade change

HR tips

Communicate the rating in a conversation before the letter is released
Keep revised salary confidential and mark the letter so
Separate variable pay payout for the past year from target variable for the new year
Make feedback specific; generic praise lowers trust

Use this letter as a starting point; keep revised pay consistent with your compensation policy, PF and gratuity rules under the Labour Codes, and review with a legal or payroll adviser where needed.

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Frequently asked questions

What should an IT appraisal letter contain?+

The review period, rating, revised CTC with breakup, effective date, any promotion and short feedback with focus areas for the next cycle.

Is variable pay mentioned in the appraisal letter?+

Yes, usually as the revised target variable for the new cycle. Past variable payout is often communicated separately.

Can an appraisal letter be issued without a hike?+

Yes. It should still state the rating and feedback and explain that compensation remains unchanged for this cycle.

All 55 industry editions →

[Company Logo][Company Name]
APPRAISAL LETTER
Ref. No.:
[Reference Number]
Date:
[Date]
Employee ID:
[Employee ID]
To,
[Employee Name]
[Designation], [Department]
[Work Location]
Subject: Annual Appraisal for [Review Period]
Dear [Employee Name],

We are pleased to share the outcome of your annual performance appraisal for [Review Period]. Your overall rating is [Rating].
Performance Highlights
Plant / Quality roles: You completed [Percentage]% of assigned SOP training on time, contributed to the successful [Audit Name] audit with [Number] observations in your area, and handled deviations and CAPAs within timelines. Your documentation practices reflected good data integrity.

Field-force roles: You achieved [Percentage]% of your annual sales target in [Territory], maintained a call average of [Number] and coverage of [Percentage]% of listed doctors, while complying with the company's ethical promotion guidelines.
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[Company Logo][Company Name]

PERFORMANCE APPRAISAL LETTER

Ref. No.:: [Reference Number]
Date:: [Date]
Employee ID:: [Employee ID]
Plant:: [Plant Name]

To,
[Employee Name]
[Designation], [Department]

Subject: Annual Performance Appraisal – [Review Period]

Dear [Employee Name],

We appreciate your efforts in the [Department] during [Review Period]. Based on the review by your Section Head and Plant Head, your performance rating is [Rating].

Key Results

KPI	Target	Achieved
Production vs Plan	[Target]	[Achieved]
OEE of line / machine	[Target]	[Achieved]
Rejection / Rework %	[Target]	[Achieved]
Lost Time Injuries in area	Zero	[Achieved]
Kaizens Implemented	[Target]	[Achieved]
Attendance %	[Target]	[Achieved]

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[Company Logo][Company Name]

APPRAISAL LETTER

Ref. No.:: [Reference Number]
Date:: [Date]
Employee ID:: [Employee ID]
Process:: [Process Name]

To,
[Employee Name]
[Designation], [Process Name]

Subject: Performance Appraisal – [Review Period]

Dear [Employee Name],

Thank you for your dedication to our customers on the [Process Name] process. Your performance for [Review Period] has been reviewed against the process scorecard, and your overall rating is [Rating].

Your Scorecard

Metric	Target	Your Average
Quality Score	[Target]%	[Achieved]%
CSAT	[Target]%	[Achieved]%
Average Handle Time	[Target] sec	[Achieved] sec
First Contact Resolution	[Target]%	[Achieved]%
Schedule Adherence	[Target]%	[Achieved]%
Attendance	[Target]%	[Achieved]%

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[Company Logo][Company Name]

SALES PERFORMANCE APPRAISAL LETTER

Ref. No.:: [Reference Number]
Date:: [Date]
Employee ID:: [Employee ID]
Territory:: [Territory]

To,
[Employee Name]
[Designation], Sales
[Work Location]

Subject: Annual Appraisal and Revised Sales Compensation – [Review Period]

Dear [Employee Name],

Thank you for your efforts in growing our business in [Territory] during [Review Period]. Your performance has been reviewed against your annual sales plan, and your overall rating is [Rating].

Performance Summary

Measure	Target	Achieved	Achievement %
Revenue / Sales (₹)	[Amount]	[Amount]	[Percentage]
Collections (₹)	[Amount]	[Amount]	[Percentage]
New Accounts Acquired	[Number]	[Number]	[Percentage]
Gross Margin %	[Target]	[Achieved]	[Percentage]

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[Company Logo][Company Name]
OFFER LETTER
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Candidate Name]
[Candidate Address]
Subject: Offer of Employment – [Designation], [Department]
Dear [Candidate Name],

With reference to your application and the interviews held, we are pleased to offer you the position of [Designation] in the [Department] department of [Company Name], based at [Work Location]. You will report to [Reporting Manager]. We request you to join on or before [Date of Joining].
1. Compensation
Your annual Cost to Company (CTC) will be ₹[CTC], as detailed below. Statutory deductions such as PF, ESI (if applicable), professional tax and income tax will be made as per law.
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[Company Logo][Company Name]
OFFER LETTER
Ref. No.:
[Reference Number]
Date:
[Date]
Candidate ID:
[Candidate ID]
To,
[Candidate Name]
[Candidate Address]
[Email Address]
Subject: Offer of Employment – [Designation] ([Grade])
Dear [Candidate Name],

Congratulations! Following our discussions, [Company Name] is pleased to offer you the position of [Designation] at grade [Grade] in our [Department] practice. Your base location will be [Work Location] and you will report to [Reporting Manager]. Your expected date of joining is [Date of Joining].
Compensation
Component Annual (₹)
Fixed Pay (Basic, HRA, allowances) [Amount]
Employer PF Contribution [Amount]
Gratuity [Amount]
Target Variable Pay [Amount]
Total CTC [CTC]
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Offer Letter Format for IT Company
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[Company Logo][Company Name]
LETTER OF OFFER
Ref. No.:
[Reference Number]
Date:
[Date]
To,
[Candidate Name]
[Candidate Address]
Subject: Offer for the Role of [Designation] – [Team Name]
Dear [Candidate Name],

It was great speaking with you. We are happy to offer you the role of [Designation] in the [Team Name] team at [Company Name]. You will primarily work on [Product / Client Project] using [Tech Stack], reporting to [Reporting Manager]. Your work arrangement will be [Onsite / Hybrid / Remote] with base location [Work Location], and your proposed date of joining is [Date of Joining].
1. Compensation and Benefits
- Annual CTC: ₹[CTC], including fixed pay, employer PF contribution and gratuity.
- Performance bonus: up to ₹[Amount] per year, based on the bonus plan.
- ESOP: a proposed grant of [Number] options, subject to the company's ESOP plan, board approval and the vesting schedule in your grant letter.
- Equipment: a company laptop with licensed tools / a monthly device allowance of ₹[Amount].
- Health insurance for you and dependants as per policy.
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Component	Annual (₹)
Fixed Pay (Basic, HRA, allowances)	[Amount]
Employer PF Contribution	[Amount]
Gratuity	[Amount]
Target Variable Pay	[Amount]
Total CTC	[CTC]

[Company Logo][Company Name]

OFFER OF EMPLOYMENT

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

To,
[Candidate Name]
S/o / D/o [Parent Name]
[Candidate Address]

Subject: Offer of Employment as [Designation] – [Department], [Plant Name]

Dear [Candidate Name],

We are pleased to offer you employment as [Designation] in the [Department] department of our plant at [Work Location]. You will report to [Reporting Manager]. Please report to the plant HR office at 9:00 a.m. on [Date of Joining].

1. Wages and Statutory Benefits

Component	Monthly (₹)
Basic Salary	[Basic Salary]
Dearness Allowance (DA)	[Amount]
HRA	[HRA]
Conveyance / Shift Allowance	[Amount]
Gross Monthly Wages	[Amount]
Employer PF (12% of basic + DA, as per rules)	[Amount]
Employer ESI (if eligible)	[Amount]

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Appraisal Letter Template for IT Company

Preview of the letter

Subject: Performance Appraisal and Compensation Revision – [Review Period]

Revised Compensation

Focus Areas for the Coming Cycle

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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