An increment letter tells an employee that their salary has been revised, by how much and from when. This example is a salary revision for a teacher at a school, with the old and new CTC and the revised monthly breakdown.
Most Indian employers revise salaries once a year after the appraisal cycle, usually from April. Some also give increments on confirmation after probation, or mid-year to correct pay against the market.
A salary revision doesn't need a new appointment letter. The increment letter records the change, and the rest of the appointment terms carry on as before.
Employees read an increment letter closely, so make sure every figure agrees with payroll before you send it.
No. The increment letter records the new salary, and the other terms in the original appointment letter continue unless the letter says otherwise.
Most companies revise salaries once a year, usually from April at the start of the financial year. Schools and colleges sometimes follow the academic year instead.
It's optional. Showing the previous and revised CTC lets the employee see the change clearly; if you'd rather not show the old figure, set the previous CTC to 0 and only the new salary appears.
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