Increment Letters
Generate salary revision and appraisal letters for your team from the Offrd dashboard. Part of the same platform you use for offer letters and payslips.
Indian companies typically run appraisals annually, often at the end of the financial year. The increment letter closes that cycle: it formally records the revised salary, the effective date, and any change in role. Without it, a compensation change exists only as a verbal understanding or an email thread that may be hard to find two years later.
There is no specific law in India mandating increment letters, but the moment a salary changes, you need documentation. The new salary must comply with minimum wage legislation for the role and region. The change should be consistent with the employment contract. And the employee needs to know the tax implication of the revision. An increment letter addresses all of this in one place.
Offrd generates increment letters from the same dashboard you use for offer letters and payslips. The employee's details are already in the system. You fill in the revised figures, and the letter is ready.
The core of any increment letter. The new compensation and the date from which it applies, stated clearly.
If the increment comes with a promotion or change in title, the letter captures the new designation alongside the revised salary.
Offrd supports increment letters for both year-end and mid-cycle reviews without needing separate templates for each.
Once issued, the increment letter sits in the employee's document history on Offrd alongside their offer letter, payslips, and other documents.
Offrd links payslip generation to the same employee record, so the revised salary carries through to subsequent payslips without manual adjustment.
Whether you are issuing increment letters to 5 people or 150, the process is the same. No reformatting or version management.
The Labour Codes effective from November 2025 introduced a 50 percent basic wage rule, which affects how salary components are structured. Any increment letter issued after this date should be reviewed against this requirement to ensure the revised salary structure is compliant.
The same codes made appointment letters mandatory under the Code on Social Security. While increment letters are not specifically called out, the broader direction is toward formal documentation of employment terms at every stage. Issuing increment letters promptly and accurately fits squarely within this expectation.
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