Free template template · Word

Compensation Benchmarking Sheet

A compensation benchmarking sheet compares what your company pays for each role with market pay data, using percentiles such as P25, P50 and P75. Compensation teams use it to check competitiveness by role, level and city before setting bands or increments.

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[Company Logo][Company Name]

COMPENSATION BENCHMARKING SHEET

Company:: [Company Name]
Data Sources:: [Survey / Source Names]
Data Effective Date:: [DD/MM/YYYY]
Target Market Position:: [P50 / P60 / P75]

A. Role Matching

Internal Role	Grade	Survey Role / Code	Match Quality	City	Incumbents
[Designation]	[Grade]	[Survey Role]	Strong / Moderate / Weak	[City]	[No.]
[Designation]	[Grade]	[Survey Role]	Strong / Moderate / Weak	[City]	[No.]
[Designation]	[Grade]	[Survey Role]	Strong / Moderate / Weak	[City]	[No.]
[Designation]	[Grade]	[Survey Role]	Strong / Moderate / Weak	[City]	[No.]

B. Market Comparison (Annual Fixed Pay, ₹)

Internal Role	Internal Median	Market P25	Market P50	Market P75	Market Index (%)	Position
[Designation]	[Amount]	[Amount]	[Amount]	[Amount]	[x]%	Below / At / Above
[Designation]	[Amount]	[Amount]	[Amount]	[Amount]	[x]%	Below / At / Above
[Designation]	[Amount]	[Amount]	[Amount]	[Amount]	[x]%	Below / At / Above
[Designation]	[Amount]	[Amount]	[Amount]	[Amount]	[x]%	Below / At / Above

C. Method Notes

Market Index = Internal Median ÷ Market P50 × 100.
Survey data is aged to [DD/MM/YYYY] at [x]% per annum.
Roles with weak matches are excluded from band-setting decisions.
Fixed pay excludes variable pay, ESOPs and one-time bonuses.

D. Findings and Actions

Role	Finding	Recommended Action	Owner	Target Date
[Designation]	[Finding]	[Action]	[Owner]	[DD/MM/YYYY]
[Designation]	[Finding]	[Action]	[Owner]	[DD/MM/YYYY]
[Designation]	[Finding]	[Action]	[Owner]	[DD/MM/YYYY]

Prepared by
[HR Name]
Compensation & Benefits
Date: [Date]

Reviewed by
[Authorised Signatory]
Date: [Date]

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What this template includes

Internal role mapped to a comparable survey or market role
Match quality rating, as weak matches distort results
Market percentiles side by side with internal median pay
Market index showing position as a percentage of P50
City and level columns, since pay varies sharply across Indian metros
Data source and date for every figure

When to use it

Setting or refreshing salary bands for the year
Checking whether high attrition in a role is linked to pay
Pricing a new role before opening a vacancy
Preparing a market position note for leadership

How to customise this template

1Enter the survey or data sources you subscribe to
2Choose your target market position (for example P50 or P60)
3Add separate tabs for metros and tier-2 cities if you hire in both
4Age older survey data to the current date using your chosen factor
5Hide internal names before sharing outside HR

HR tips

Benchmark on job content, not just job titles
Use at least two data sources for critical roles
Compare like with like: fixed to fixed, total cash to total cash
Note the sample size; very small samples are unreliable

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Frequently asked questions

What is salary benchmarking?+

It is comparing your pay for a role with what other employers pay for similar roles, usually using salary surveys or market data.

What do P25, P50 and P75 mean?+

They are percentiles. P50 is the market median; P25 means a quarter of the market pays less than that figure, and P75 means three quarters pay less.

What is a market index?+

It is your internal pay divided by the market P50, shown as a percentage. Above 100% means you pay above the market median.

All 50 increment, promotion & career →

[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

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[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]

COMPENSATION REVIEW FORM

Review No.:: [Reference Number]
Review Date:: [Date]
Review Type:: Annual / Role Change / Retention / Restructure

1. Employee Profile

Employee Name	[Employee Name]
Employee ID	[Employee ID]
Designation	[Designation]
Grade	[Grade]
Department	[Department]
Work Location	[Work Location]
Criticality of Role: High / Medium / Low
Flight Risk: High / Medium / Low

2. Total Rewards Comparison

Element	Current (₹ p.a.)	Proposed (₹ p.a.)	Remarks
Basic Salary	[Amount]	[Amount]	[Remarks]
HRA and Allowances	[Amount]	[Amount]	[Remarks]
Variable Pay at Target	[Amount]	[Amount]	Target [x]% of fixed
Employer PF	[Amount]	[Amount]	12% of basic, subject to ceiling rules
Gratuity (provision)	[Amount]	[Amount]	As per company practice
Group Medical / Term Insurance	[Amount]	[Amount]	Cover ₹ [Amount]
Other Benefits (car lease, meal card etc.)	[Amount]	[Amount]	[Remarks]
Total CTC	[CTC]	[Amount]	[x]% change

3. Variable Pay History

Form · Word

Compensation Review Form

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[Company Logo][Company Name]

PAY EQUITY ANALYSIS SHEET

Company:: [Company Name]
Review Period:: [FY 20XX–XX]
Data as of:: [DD/MM/YYYY]
Confidentiality:: Restricted – HR only

A. Group-level Comparison (Annual Fixed Pay, ₹)

Role / Grade	Location	Women (No.)	Women Median	Men (No.)	Men Median	Gap (%)	Flag
[Designation] / [Grade]	[City]	[No.]	[Amount]	[No.]	[Amount]	[x]%	Review / OK
[Designation] / [Grade]	[City]	[No.]	[Amount]	[No.]	[Amount]	[x]%	Review / OK
[Designation] / [Grade]	[City]	[No.]	[Amount]	[No.]	[Amount]	[x]%	Review / OK
[Designation] / [Grade]	[City]	[No.]	[Amount]	[No.]	[Amount]	[x]%	Review / OK

B. Individual Case Review

Emp ID	Role / Grade	Fixed Pay (₹)	Group Median (₹)	Experience (Yrs)	Last Rating	Explained by	Unexplained Gap (₹)
[Employee ID]	[Designation] / [Grade]	[Amount]	[Amount]	[No.]	[Rating]	[Factor]	[Amount]
[Employee ID]	[Designation] / [Grade]	[Amount]	[Amount]	[No.]	[Rating]	[Factor]	[Amount]
[Employee ID]	[Designation] / [Grade]	[Amount]	[Amount]	[No.]	[Rating]	[Factor]	[Amount]

C. Correction Plan

Template · Word

Pay Equity Analysis Sheet

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[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

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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

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[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
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[Company Logo][Company Name]
PROMOTION ANNOUNCEMENT
Subject: Congratulations to [Employee Name] on Promotion as [New Designation]
From:
[HR Name] / [Department Head]
To:
[Distribution List]
Date:
[Date]
Ref. No.:
[Reference Number]
Dear Team,
We are pleased to announce that [Employee Name], currently [Current Designation] in the [Department] team, has been promoted to [New Designation] with effect from [Effective Date].
[Employee Name] joined [Company Name] on [Date of Joining] and has consistently delivered strong results. Some notable contributions include [Achievement 1], [Achievement 2] and [Achievement 3]. This promotion recognises that commitment and the trust the leadership team places in [his/her/their] ability to take on larger responsibilities.
New Responsibilities
Email template · Word
Promotion Announcement
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Compensation Benchmarking Sheet

Preview of the template

A. Role Matching

B. Market Comparison (Annual Fixed Pay, ₹)

C. Method Notes

D. Findings and Actions

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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