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Increment Approval Form

An increment approval form records a proposed salary increase for one employee and routes it through the reporting manager, HR and finance for sign-off before any letter is issued. It is used during the annual appraisal cycle and for off-cycle raises.

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[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

C. Justification by Reporting Manager

[State the key achievements, scope of role, retention risk or market reason supporting this increment.]

D. HR and Finance Review

Within approved increment guideline: Yes / No
Within department budget: Yes / No
Remarks by HR	[Remarks]
Remarks by Finance	[Remarks]

Declaration: We confirm that the proposal above has been reviewed against the company compensation policy and the approved budget for the cycle, and that the information recorded is accurate.

Recommended by
[Reporting Manager]
Date: [Date]

Reviewed by
[HR Name]
HR Department
Date: [Date]

Approved by
[Authorised Signatory]
Finance / Business Head
Date: [Date]

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What this template includes

Employee and grade details so approvers see the context at a glance
Current and proposed CTC side by side with the percentage change
Performance rating and justification to show the raise is merit-based
Effective date and whether arrears are payable
Budget check by finance so the cycle stays within the approved pool
Three-level sign-off creating an audit trail

When to use it

Recommending an annual merit increment after the appraisal rating is finalised
Seeking approval for an off-cycle raise to retain a key employee
Recording a correction increment where pay is below the grade minimum
Documenting a special increment on completing a certification or higher qualification

How to customise this template

1Add your company name, logo and form number in the header
2Match the rating scale to the one used in your appraisal system
3Add or remove approval levels as per your delegation of authority
4Link the increment type list to your compensation policy categories
5Save as a fillable Word form or convert to PDF for e-signature

HR tips

Never let the increment letter go out before every approval box is signed
Ask managers to write a specific justification, not just "good performer"
Check the proposed CTC against the salary band before approving
Record the effective date clearly so payroll does not miss arrears

This template is a starting point only. Review it against applicable labour laws, state rules, your standing orders and compensation policy, and with a legal adviser where needed.

For HR & hiring managers

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Frequently asked questions

Who approves a salary increment in a company?+

Usually the reporting manager recommends it, HR checks it against policy and bands, and finance or the business head gives final approval. Larger raises may need director or CEO sign-off as per the delegation matrix.

Should the increment approval form be shared with the employee?+

No. It is an internal approval record. The employee receives a separate increment letter once approval is complete.

Can an increment be approved with retrospective effect?+

Yes, if policy allows. Mention the effective date and the arrears amount so payroll can process the difference in the next salary run.

All 50 increment, promotion & career →

[Company Logo][Company Name]

PROMOTION APPROVAL FORM

Company:: [Company Name]
Recommendation Ref.:: [Reference Number]
Date Submitted:: [Date]

A. Employee and Proposal

Item	Current	Proposed
Employee Name / ID	[Employee Name] / [Employee ID]	–
Designation	[Designation]	[New Designation]
Grade	[Grade]	[New Grade]
Department / Location	[Department] / [Work Location]	[Department] / [Work Location]
Annual CTC (₹)	[CTC]	[Revised CTC]
Effective Date	–	[DD/MM/YYYY]

B. Financial Impact

Increase in CTC: ₹[Amount] ([Percentage]%)
Impact on current year budget: ₹[Amount]
Within approved budget: Yes / No
Grade pay range for new grade: ₹[Min] – ₹[Max]

C. Approval Matrix

Form · Word

Promotion Approval Form

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

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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

Download .docx

[Company Logo][Company Name]

PROMOTION RECOMMENDATION FORM

Company:: [Company Name]
Promotion Cycle:: [YYYY–YY] / Out of cycle
Form Ref.:: [Reference Number]

Section 1: Employee Details

Employee Name	[Employee Name]
Employee ID	[Employee ID]
Designation	[Designation]
Department	[Department]
Reporting Manager	[Reporting Manager]
Date of Joining	[Date of Joining]
Work Location	[Work Location]
Current Grade	[Grade]
Time in Current Grade	[Years]

Section 2: Proposed Role

Proposed Designation	[New Designation]
Proposed Grade	[New Grade]
Proposed Effective Date	[DD/MM/YYYY]
Vacancy / new position	[Details]

Section 3: Eligibility Check

Form · Word

Promotion Recommendation Form

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[Company Logo][Company Name]

PROMOTION EVALUATION FORM

Company:: [Company Name]
Promotion Cycle:: [Cycle / Year]
Form No.:: [Reference Number]

1. Employee Details

Employee Name	[Employee Name]
Employee ID	[Employee ID]
Current Designation	[Designation]
Current Grade	[Grade]
Department	[Department]
Work Location	[Work Location]
Date of Joining	[Date of Joining]
Date of Last Promotion	[DD/MM/YYYY]
Reporting Manager	[Reporting Manager]
Proposed Designation / Grade	[Proposed Designation]

2. Eligibility Check

Minimum time in current grade completed ([Number] years)
Performance rating of [Rating] or above in the last two cycles
No disciplinary action pending or in force
Mandatory training and certifications completed
Approved position available in the proposed grade

3. Performance History

Form · Word

Promotion Evaluation 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

Download .docx

Increment Approval Form

Preview of the form

A. Employee Details

B. Increment Proposal

C. Justification by Reporting Manager

D. HR and Finance Review

What this template includes

When to use it

How to customise this template

HR tips

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Frequently asked questions

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