Merit increase letters serve as a way to inform employees that they have received an increase in pay as a result of performing well or doing a superior job in their occupation. Oftentimes this letter acts as a formal way to effect in writing the change of an employee's salary.A typical merit increase letter appears as a formal business letter. A sample structure of a merit increase letter may
. include the date at the top to signify the date of the salary increase notice, with the employee name and either the campus address or the email address below the name. Other information that may show on the letter includes the employee number and current position or title. The letter begins with a polite, respectful opening such as "Dear [employee name]."The body of the merit increase letter offers congratulations to the employee using wording such as "I am pleased to inform you.." The merit increase letter has several important components in the body. First, it must list the new annual salary of the employee to set appropriate expectations. Secondly, the letter must mention the effective date of the salary change so the employee knows when to expect receiving a larger paycheck. The letter may mention that the salary increase appears retroactively based on a certain date so that the employee shall get compensation for superior past performance as well. Sometimes a merit increase letter offers words to encourage the employee to continue to work hard, such as "we ... believe [the increase] will serve as an incentive for you to continue to strive to meet our business goals and objectives in the future." The letter should also state the percent increase in the salary. The letter ends with "Sincerely," or another formal closing, followed by the author of the letter and his or her title. More reference links: http://www.google.com/url?sa=t&rct=j&q=merit%20increase%20letter&source=web&cd=2&ved=0CC4QFjAB&url=http%3A%2F%2Fwww.hr.ufl.edu%2Fclass_comp%2Fforms%2F2010_merit_increase_template.docx&ei=Pd3zTuq2F6Pz0gGZ-vCOAg&usg=AFQjCNHjRhb2IjgKGv0kgqxBSoneRHiI_A&cad=rja http://www.shrm.org/TemplatesTools/Samples/HRForms/Articles/Pages/1CMS_016310.aspx
