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Free letter template · Word

Referral Reward Letter

A referral reward letter confirms that an employee has earned a referral bonus because a candidate they referred was hired and completed the eligibility period. HR or talent acquisition issues it, stating the referred candidate, the bonus amount and payout details.

  • Editable Word (.docx)
  • Made for India
  • 17 fill-in fields highlighted
  • Free, no sign-up

Preview of the letter

[Highlighted] = fill in
[Company Logo][Company Name]

REFERRAL REWARD LETTER

Ref. No.:
[Reference Number]
Date:
[Date]
Referral ID:
[Referral ID]

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

Subject: Referral reward for the successful hiring of [Candidate Name]

Dear [Employee Name],

Thank you for referring [Candidate Name], who joined us as [Designation] in [Department] on [Date of Joining]. We are happy to confirm that [Candidate Name] has completed the eligibility period of [Number] days under our Employee Referral Policy, and you are now eligible for the referral reward.

Referral SlabReward (₹)InstalmentPayroll Month
[Slab, e.g. Level 2 roles][Amount][1 of 1][Month YYYY]
[Amount][2 of 2, if applicable][Month YYYY]

The reward will be credited with your salary and is subject to TDS. Good people bring good people, and your referral has strengthened our team. Please keep recommending talented people from your network.

With thanks,

[HR Name]
Talent Acquisition Lead
[Company Name]

What this template includes

  • Referred candidate's name, role and date of joining
  • Eligibility period completed under the referral policy
  • Referral slab applied and amount
  • Instalment schedule if applicable
  • Payroll month and TDS note
  • Thanks for helping build the team

When to use it

  • A referred candidate completes the required period after joining, e.g. 90 days
  • Paying a referral bonus in instalments
  • Hard-to-fill roles with a higher referral slab
  • Campus or alumni referral drives

How to customise this template

  1. 1Check the referral was logged before the candidate applied directly
  2. 2Apply the correct slab for the role level
  3. 3Add instalment rows if paid in two parts
  4. 4Delete candidate designation if it is confidential
  5. 5Copy payroll on the letter

HR tips

  • Confirm the candidate is still in service on the eligibility date
  • State the slab so others understand how referrals are rewarded
  • Pay on time; delays discourage future referrals
  • Avoid sharing the candidate's salary or personal details

For HR & hiring managers

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Frequently asked questions

When is an employee referral bonus paid?+

Most companies pay after the referred candidate completes a set period, commonly 60 to 180 days, as defined in the referral policy.

Is a referral bonus taxable?+

Yes, referral bonuses paid by the employer are generally taxable as salary and TDS is deducted through payroll.

Do HR and hiring managers get referral bonuses?+

Many policies exclude recruiters and the hiring manager for that role. Check your referral policy.