A salary increase letter therefore provides both the employer and employee with a clear written record of the change.<\/p>\n
What is an Employee Salary Increase Letter?<\/h2>\n
An employee salary increase letter is a formal document that employers use to communicate to staff that their salary will be increased<\/strong>. It usually follows a standard format, outlining:<\/p>\n For example, an employee earning KES 150,000 per month may receive an increase to KES 170,000 following an annual performance review. The salary increase letter would confirm the new salary and the date from which the new amount will apply.<\/p>\n A salary increase letter should be clear and specific rather than simply telling an employee that they have received a “pay rise”. Employees should understand exactly what is changing and when the change takes effect.<\/p>\n This ebook puts every obligation into a month-by-month reference; deductions, public holidays, the minimum wage increase, and a penalty checklist.<\/p>\n \n \n Download for free <\/a>\n <\/div>\n\n A salary increase letter benefits both the employer and employee.<\/p>\n A salary increase letter does not need to be lengthy. However, it should contain enough information for the employee to understand the change.<\/p>\n 1. Employee details: <\/strong>Include the employee’s:<\/p>\n 2. Date of the letter:<\/strong> The letter should include the date on which it is issued.<\/p>\n 3. Current salary:<\/strong> State the employee’s current salary where appropriate so that the change is clear.<\/p>\n 4. New salary:<\/strong> Clearly state the employee’s new salary and whether the amount refers to a monthly or annual salary.<\/p>\n For example: Your monthly gross salary will increase from KES 150,000 to KES 170,000.<\/em><\/p>\n<\/blockquote>\n If the organisation uses a different compensation structure, the letter should clearly explain what the stated amount represents.<\/p>\n 5. Effective date:<\/strong> Clearly state when the new salary takes effect.<\/p>\n 6. Reason for the increase:<\/strong> Where appropriate, explain why the employee is receiving the increase. Common reasons include:<\/p>\n The explanation does not need to disclose confidential compensation information about other employees.<\/p>\n 7. Changes to benefits or allowances:<\/strong> If the salary increase is accompanied by changes to benefits or allowances, explain these clearly. For example, the employee may receive a revised housing allowance, transport allowance or other component of their compensation package.<\/p>\n 8. Appreciation and next steps:<\/strong> The letter should acknowledge the employee’s contribution and explain who they can contact if they have questions.<\/p>\n There are several steps HR teams can follow when preparing a salary increase letter.<\/p>\n Step 1: Confirm The Salary Increase <\/strong><\/p>\n Before preparing the letter, confirm that the salary increase has received the required internal approval. HR should verify:<\/p>\n Step 2: Check The Employee’s Contract<\/strong><\/p>\n Review the employee’s existing employment agreement to ensure that the proposed change is consistent with the employee’s terms and the organisation’s compensation policies. Under the Kenya Employment Act, remuneration is among the written particulars of employment, and changes to relevant particulars should be reflected in the employment contract and communicated to the employee in writing.<\/p>\n Step 3: Calculate The New Compensation<\/strong><\/p>\n Confirm how the salary increase will affect the employee’s gross pay and any applicable payroll calculations. This is particularly important because a change to gross salary can affect the employee’s statutory deductions and other payroll calculations.<\/p>\n Step 4: Prepare The Letter<\/strong><\/p>\n Use a consistent company format but personalise the content for the employee. The letter should communicate the decision clearly without unnecessary detail.<\/p>\n Step 5: Update HR And Payroll Records<\/strong><\/p>\n Once the salary increase has been communicated and the relevant documentation completed, update the employee’s records and payroll information. Keeping HR and payroll records aligned helps prevent discrepancies between the employee’s documented salary and the amount processed through payroll.<\/p>\n Step 6: Give The Employee An Opportunity To Ask Questions<\/strong><\/p>\n A salary increase is usually positive news, but employees may still have questions about how the new amount affects their overall compensation. HR or the employee’s manager should be available to explain the change and clarify any questions.<\/p>\n Book a free demo and we'll reach out to identify key areas for improvement across your business management.<\/p>\n \n \n Get a demo <\/a>\n <\/div>\n\n Below is a salary increase letter template that Kenyan employers can use. Copy and adapt.<\/p>\n [Company Name]<\/span><\/strong><\/em> [Employee Name]<\/span><\/strong><\/em> Dear [Employee\u2019s Name],<\/em><\/p>\n We are pleased to inform you that following our review of your performance and contribution to [Company Name]<\/span>, your monthly gross salary will be increased from KES [Current Salary]<\/span> to KES [New Salary]<\/span>, effective [Effective Date]<\/span>.<\/em><\/p>\n This adjustment reflects [your performance and contribution to the organisation \/ your increased responsibilities \/ the outcome of our annual compensation review \/ another relevant reason]<\/span>.<\/em><\/p>\n All other terms and conditions of your employment will remain unchanged unless otherwise stated in this letter.<\/em><\/p>\n We appreciate your continued commitment and contribution to [Company Name]<\/span> and look forward to your continued growth and success within the organisation.<\/em><\/p>\n If you have any questions regarding this salary adjustment, please contact [HR Contact\/Manager]<\/span>.<\/em><\/p>\n Thank you for your hard work, and we look forward to your continued success within our organisation.<\/em><\/p>\n Sincerely,<\/em><\/p>\n [Your Full Name] Note: An employee salary increase letter template should form the framework of your letter, not the final piece. The final letter should be personalised and speak to the individual receiving it.<\/p>\n See Factorial in action and get your free demo today!<\/p>\n \n \n Get a demo <\/a>\n <\/div>\n\n \n
Payroll & Compliance Calendar<\/h4>\n \n
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\n <\/div>\n <\/div>\n<\/div>\nWhy Is a Salary Increase Letter Important?<\/h2>\n
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What Should A Salary Increase Letter Include?<\/h2>\n
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How To Write A Salary Increase Letter In Kenya<\/h2>\n
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\n <\/div>\n <\/div>\n<\/div>\nSalary Increase Letter Template<\/h2>\n
\n[Company Address]<\/span><\/strong><\/em>
\n[Date]<\/span><\/strong><\/em><\/p>\n
\n[Job Title]<\/span><\/strong><\/em>
\n[Department]<\/span><\/strong><\/em><\/p>\n
\n[Your Title]
\n[Your Contact Information]<\/em><\/strong><\/p>\nReady to transform your business?<\/h4>\n \n