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Market Salary Analysis

A market salary analysis is a short report that interprets market pay data for leadership, explaining where the company stands, what is driving gaps and what action is recommended. HR or compensation teams prepare it ahead of budget approval or a band revision.

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[Company Logo][Company Name]

MARKET SALARY ANALYSIS REPORT

Company:: [Company Name]
Prepared for:: [Leadership Team / Board]
Prepared by:: [HR Name]
Date:: [Date]

1. Executive Summary

Our overall fixed pay sits at [x]% of the market median for the roles reviewed. The largest gaps are in [Role Family], where pay is at [x]% of median and voluntary attrition is [x]%. We recommend [Option] at an estimated annual cost of ₹ [Amount].

2. Scope and Data Sources

Roles covered: [No.] roles across [Role Families]
Locations: [Cities]
Sources: [Survey / Source Names], data as of [DD/MM/YYYY]
Comparison basis: annual fixed pay / total cash

3. Findings by Role Family

Role Family	Levels	Market Index (%)	Attrition (%)	Offer Decline (%)	Observation
[Role Family]	[Levels]	[x]%	[x]%	[x]%	[Observation]
[Role Family]	[Levels]	[x]%	[x]%	[x]%	[Observation]
[Role Family]	[Levels]	[x]%	[x]%	[x]%	[Observation]
[Role Family]	[Levels]	[x]%	[x]%	[x]%	[Observation]

4. Key Observations

[Observation on entry-level pay compared with market]
[Observation on mid-level compression between grades]
[Observation on city differences]

5. Options and Cost

Option	Description	Employees Covered	Annual Cost (₹)	Expected Impact
A	Targeted correction for roles below [x]% of median	[No.]	[Amount]	[Impact]
B	Band revision for [Role Family]	[No.]	[Amount]	[Impact]
C	No change; monitor for one quarter	0	Nil	[Risk]

6. Recommendation

HR recommends Option [A/B/C] effective [DD/MM/YYYY], to be funded from [Budget Source]. Progress will be reviewed through attrition and offer-acceptance data after [x] months.

Prepared by
[HR Name]
[Designation]

Approved / Noted by
[Authorised Signatory]
Date: [Date]

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What this template includes

Executive summary with the main conclusion first
Scope and data sources so readers know how reliable it is
Findings by role family and level
Link to people metrics such as attrition and offer-decline rates
Cost estimate of closing gaps
Clear recommendations with options

When to use it

Making the case for the annual increment budget
Explaining rising attrition or offer declines in a role family
Supporting a proposal to revise salary bands
Briefing leadership before entering a new city or skill market

How to customise this template

1Pick the role families that matter most this year
2Insert your own attrition and offer data from the HRMS
3Add charts from your benchmarking sheet in the findings section
4Offer two or three costed options rather than one demand
5Keep the report to a few pages for leadership readers

HR tips

Lead with the decision you need, then the evidence
Separate facts from interpretation
Do not quote market numbers without naming the source and date
Show the cost of inaction, such as hiring and backfill time, in your own data

For HR & hiring managers

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Frequently asked questions

What is a market salary analysis?+

It is a review of external pay data compared with your internal pay, written up with conclusions and recommendations for decision-makers.

Where can Indian companies get market salary data?+

Common sources are paid salary surveys from consulting firms, industry association studies, peer company exchanges and job-portal salary insights. Use more than one where possible.

How often should a market salary analysis be done?+

At least once a year before the increment cycle, and additionally for hot-skill roles where the market is moving quickly.

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

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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]
SALARY REVIEW FORM
Review No.:
[Reference Number]
Date:
[Date]
Section 1 – Employee Details
Employee Name [Employee Name]
Employee ID [Employee ID]
Designation [Designation]
Department [Department]
Date of Joining [Date of Joining]
Reporting Manager [Reporting Manager]
Section 2 – Reason for Review
- Employee request
- Confirmation after probation
- Increase in role scope
- Internal pay parity concern
- Market / retention concern
- Other: [Specify]
Section 3 – Current Pay Position
Form · Word
Salary Review Form
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Employee Name	[Employee Name]
Employee ID	[Employee ID]
Designation	[Designation]
Department	[Department]
Date of Joining	[Date of Joining]
Reporting Manager	[Reporting Manager]

[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 BAND STRUCTURE

Company:: [Company Name]
Effective From:: [DD/MM/YYYY]
Basis:: Annual fixed CTC at [P50] market position
Version:: [v1.0]

1. Band Table (₹ per annum)

Band	Level Description	Minimum	Midpoint	Maximum	Range Spread	Midpoint Progression
B1	Entry / Trainee	[Amount]	[Amount]	[Amount]	[x]%	–
B2	Executive / Associate	[Amount]	[Amount]	[Amount]	[x]%	[x]%
B3	Senior Executive / Specialist	[Amount]	[Amount]	[Amount]	[x]%	[x]%
B4	Manager	[Amount]	[Amount]	[Amount]	[x]%	[x]%
B5	Senior Manager / Head	[Amount]	[Amount]	[Amount]	[x]%	[x]%

2. Location Differential

Location Tier	Cities	Adjustment to Band
Tier A	[Cities]	[x]%
Tier B	[Cities]	[x]%
Tier C	[Cities]	[x]%

3. Band Rules

Template · Word

Salary Band Structure

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[Company Logo][Company Name]

SALARY GRADE STRUCTURE

Company:: [Company Name]
Effective From:: [DD/MM/YYYY]
Owner:: [HR Name]

1. Grade Chart

Grade	Typical Designations	Typical Experience	Pay Scale (₹ p.a.)	Notice Period
W1	Operator, Helper, Office Assistant	[x] years	[Amount] – [Amount]	[Notice Period]
E1	Executive, Associate, Engineer	[x] years	[Amount] – [Amount]	[Notice Period]
E2	Senior Executive, Senior Engineer	[x] years	[Amount] – [Amount]	[Notice Period]
M1	Assistant Manager, Team Lead	[x] years	[Amount] – [Amount]	[Notice Period]
M2	Manager, Senior Manager	[x] years	[Amount] – [Amount]	[Notice Period]

2. Grade-linked Entitlements

Grade	Travel Class	Hotel Limit (₹/night)	Mobile Reimbursement (₹/month)	Group Medical Cover (₹)	Approval Limit (₹)
W1	[Class]	[Amount]	[Amount]	[Amount]	Nil
E1	[Class]	[Amount]	[Amount]	[Amount]	[Amount]
E2	[Class]	[Amount]	[Amount]	[Amount]	[Amount]
M1	[Class]	[Amount]	[Amount]	[Amount]	[Amount]
M2	[Class]	[Amount]	[Amount]	[Amount]	[Amount]

3. Guidelines

Template · Word

Salary Grade Structure

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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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Market Salary Analysis

Preview of the report

1. Executive Summary

2. Scope and Data Sources

3. Findings by Role Family

4. Key Observations

5. Options and Cost

6. Recommendation

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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