Increment Letters

Increment letters done before the quarter closes

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.

Start Free, 50 credits on signup Book a Demo

Trusted by 4,000+ Indian businesses. Setup in under 2 minutes.

An increment letter is not just a salary update. It is the legal record of what you agreed.

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.

What the letter covers

Revised salary and effective date

The core of any increment letter. The new compensation and the date from which it applies, stated clearly.

Role and designation changes

If the increment comes with a promotion or change in title, the letter captures the new designation alongside the revised salary.

Annual and mid-year appraisals

Offrd supports increment letters for both year-end and mid-cycle reviews without needing separate templates for each.

Per-employee letter history

Every increment letter issued sits in the employee record alongside their offer letter, payslips, probation letters, and exit documents. Search and reissue at any time.

Consistent with payslip data

Offrd links payslip generation to the same employee record, so the revised salary carries through to subsequent payslips without manual adjustment.

Covers any team size

Whether you are issuing increment letters to 5 people or 150, the process is the same. No reformatting or version management.

From the dashboard to the employee's inbox

The full workflow lives inside Offrd. You do not switch tabs to draft, sign, or send.

One click from Quick Actions

Increment Letter is a Quick Action on the Offrd dashboard, next to Offer Letter, Probation Letter, and Payslip. Open it, pick the employee, fill in the revised figures.

Edit Content with AI

Refine the professional language inside the letter editor before issuing. Useful when you want to soften a clause or tighten the tone.

E-signature for digital sign-off

Authorised signatory and designation captured on the letter. Sign digitally instead of printing, scanning, and emailing back.

Email it straight to the employee

Send the letter from inside Offrd. A verification prompt confirms the recipient address before the letter goes out.

Print, Download, Preview

Multi-format export from the letter screen. Preview the final version, download a PDF, or print to a physical copy.

Templates you can edit and default

Maintain your own version of the increment letter template. Set As Default so the right wording flows into every new letter automatically.

Compensation annexure attached

The revised compensation structure annexure auto-attaches to the increment letter, so the new salary breakup travels with the document.

Works for hires and existing employees

Issue increment letters to candidates you converted to employees inside Offrd, or to people already on the roll. Same flow either way.

Labour Codes 2025 and what changed for salary documentation

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.

Pay per document or subscribe

No commitment required to get started.

50 free credits on signup ₹99 per document ₹50 per active employee / month
Create a free account

Common questions

Is an increment letter mandatory in India?
No specific law mandates it, but it is standard practice and serves as the legal record of a salary change. If there is a dispute about compensation later, the increment letter is what matters.
What should an increment letter include?
Revised salary, effective date, new role if applicable, any changes to benefits. Should comply with minimum wage requirements and be consistent with the employment contract.
What is the typical increment percentage in India?
8 to 12 percent annually on average, though it varies by industry, company performance, and individual contribution.
How does Offrd generate increment letters?
Increment Letter is a Quick Action in the Offrd dashboard. Enter the revised salary and effective date; the platform generates a formatted letter ready to issue.
Can I email the increment letter directly to the employee?
Yes. Offrd has a built in email dispatcher for letters and payslips. Once you generate the increment letter, the platform shows a verification prompt with the recipient address before the letter goes out. You can correct the address from the same screen.
Can I customise the increment letter template?
Yes. Each letter type in Offrd, including increment letters, supports template editing. You can adjust the wording, save your version, and Set As Default so every new letter uses your template automatically.
What does it cost?
Rs 99 per document on pay-per-use, or included in the full subscription at Rs 50 per active employee per month. New accounts get 50 free credits on signup.

Issue increment letters before the appraisal cycle drags on

50 free credits on signup. No credit card needed.