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Free letter template · Word

Salary Revision Letter

A salary revision letter formally tells an employee that their pay has been revised, giving the new CTC, the effective date and a component-wise comparison. It is a general-purpose revision letter suitable for any reason, whether the annual cycle, a role change or an off-cycle review.

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  • Made for India
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Preview of the letter

[Highlighted] = fill in
[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].

ComponentPrevious 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.

All other terms and conditions of your employment remain unchanged. Compensation details are personal and confidential, and we request you not to discuss them with colleagues.

We appreciate your contribution and look forward to your continued association with [Company Name].

With best wishes,

For [Company Name]
[Authorised Signatory]
[Designation]
Received and accepted
[Employee Name]
Date: [Date]

What this template includes

  • Previous and revised annual CTC
  • Effective date and the payroll month it will reflect in
  • Component-wise old versus revised table
  • Arrears treatment if the effective date is backdated
  • Confidentiality of compensation
  • Statement that other terms remain unchanged

When to use it

  • Communicating any change in CTC, regardless of the reason
  • Off-cycle revisions approved by management mid-year
  • Revising pay after a change in role scope without a title change
  • Documenting a revision agreed verbally during a retention conversation

How to customise this template

  1. 1Insert both CTC figures and the percentage change
  2. 2State whether arrears will be paid and in which month
  3. 3Attach a fresh CTC annexure if the structure changes significantly
  4. 4Choose a neutral or appreciative opening line as appropriate

HR tips

  • Issue the letter before the revised payslip arrives
  • Keep percentage and absolute numbers consistent
  • Remind the employee that compensation is confidential
  • Get the duplicate signed for the personnel file

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Frequently asked questions

What is the difference between a salary revision and an increment?+

An increment is an increase, usually in the annual cycle. A revision is a broader term for any change in pay, including restructuring, market corrections or, rarely, reductions.

Can the revision be effective from a past date?+

Yes. If the effective date is earlier than the payroll month, the difference is paid as arrears, and the letter should say when.

Does a salary revision letter need employee signature?+

It is good practice to obtain a signed acknowledgement so there is a record that the employee received the revised terms.