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Free letter template · Word

Promotion Salary Revision Letter

A promotion salary revision letter is issued after a promotion has already been announced, to confirm the salary fitment in the new grade, the component-wise revised pay, any grade-linked benefits and arrears. It is the compensation follow-up to a separate promotion letter.

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Preview of the letter

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[Company Logo][Company Name]

SALARY REVISION ON PROMOTION

Ref. No.:
[Reference Number]
Date:
[Date]
Promotion Letter Ref.:
[Promotion Reference Number] dated [DD/MM/YYYY]

To,
[Employee Name]
Employee ID: [Employee ID]
[New Designation], Grade [New Grade]
[Department]

Subject: Revised Salary Consequent to Promotion

Dear [Employee Name],
Further to your promotion to [New Designation] effective [Effective Date], your salary has been fixed in Grade [New Grade] as per our promotion fitment policy ([Fitment Rule – e.g. higher of Percentage% increase or the grade minimum]).

ComponentPre-Promotion Monthly (₹)Revised Monthly (₹)
Basic Salary[Amount][Basic Salary]
House Rent Allowance[Amount][HRA]
Special Allowance[Amount][Amount]
Grade Allowance[Amount][Amount]
Gross Monthly Salary[Amount][Amount]
Employer PF and Gratuity[Amount][Amount]
Annual CTC[Previous CTC][CTC]

Grade-linked entitlements

  • Medical insurance cover: ₹[Amount] for [Coverage]
  • Travel entitlement: [Travel Class / Hotel Category]
  • Mobile reimbursement: up to ₹[Amount] per month
  • Notice period: [Notice Period]

Arrears from [Effective Date] to [Date] will be paid with the salary of [Month YYYY]. All other terms of your employment remain unchanged.

Congratulations once again.

For [Company Name]
[Authorised Signatory]
[Designation]
Acknowledged by
[Employee Name]
Date: [Date]

What this template includes

  • Reference to the promotion letter
  • Fitment rule used (e.g. minimum of new grade or fixed percentage)
  • Component-wise old and revised salary
  • New grade benefits
  • Arrears from promotion date
  • Signature and acknowledgement

When to use it

  • Promotion was announced first and pay fitment approved later
  • Organisations that issue promotion and pay letters separately
  • Moving a promoted employee to the minimum of the new grade
  • Confirming new grade benefits such as higher insurance or travel class

How to customise this template

  1. 1Quote the promotion letter number and date
  2. 2State the fitment rule from your compensation policy
  3. 3List grade-linked entitlements that change
  4. 4Compute arrears if pay is approved after the promotion date

HR tips

  • Close the gap between promotion and pay letters quickly
  • Apply the same fitment rule to all promotions in a cycle
  • Highlight non-cash benefits that come with the grade
  • Update travel and expense entitlements in systems

For HR & hiring managers

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Frequently asked questions

What is salary fitment on promotion?+

It is the rule used to fix pay in the new grade, for example moving to at least the minimum of the new band or adding a set percentage to current pay.

Why is the salary letter issued after the promotion letter?+

Some companies announce promotions first and finalise pay through a separate approval, so a second letter confirms the revised salary.

Will I get arrears if pay is approved later?+

If the revision is effective from the promotion date, the difference for intervening months is paid as arrears.