Increment letter format: fill it in, download Word or PDF.

1. Put the company’s name and address at the top, with the date of the letter.
2. Address the employee by name and say their compensation has been revised, with effect from the date it applies from.
3. Set out the revision in a table: the previous annual CTC, the revised one, the change in rupees and the change as a percentage.
4. List the monthly breakup at the new salary, and say that the employer’s PF and gratuity are part of the CTC but aren’t paid monthly.
5. Say that all other terms and conditions of employment remain unchanged.
6. Sign it for the company and download it as Word or PDF.

CTC before

The annual cost to company until the revision. With it, the letter shows the increase in rupees and as a percentage; set it to 0 and the letter states only the new figure.

For example: ₹5,40,000 to ₹6,00,000 is an increase of ₹60,000, or 11.1%.

Revised annual CTC

The new cost to company for a year: salary, plus the employer’s PF contribution, the gratuity set aside, and any bonus or insurance you count. It’s the figure the percentage is worked out on.

In-hand salary calculator

Applies from

The day the new salary starts to count. It can be earlier than the letter’s date: an increment decided in May often applies from 1 April.

If it applies from a month that’s already been paid, the difference for those months is owed as arrears. See the next term.

Arrears

The difference between the old and the new salary for months already paid before the revision was made. It’s paid later, usually with the next salary, and taxed in the year it’s paid.

For example: An increase of ₹5,000 a month, applied from April and first paid in June, owes ₹10,000 of arrears for April and May.

Monthly breakup

Each earning paid every month — Basic, HRA, special allowance and so on — and their total, the monthly gross. It is what is earned before PF, ESI and tax are deducted.

List the monthly earnings at the NEW salary. Leave out the employer’s PF and gratuity: they’re in the CTC but aren’t paid monthly.

For example: Basic ₹20,000 + HRA ₹8,000 + special allowance ₹19,000 = a monthly gross of ₹47,000.

Employee code

The number or code the company knows the employee by, such as “EMP014”. A next employer or a bank matches it against the company’s records, so print it if you use one.

Authorised signatory

The person who signs for the company — usually a director, a partner, the proprietor or the HR head. Their name and title print above the signature line.

• Salary certificate format

  A salary certificate states that the employee works for the company, in their designation, since their date of joining, and gives their annual CTC as at the letter’s date with the monthly breakup. It is not Form 16. Fill yours in and download it as a PDF.

• In-hand salary calculator

  Take-home is your gross salary minus employee PF (12% of Basic, at most ₹1,800 a month on the ₹15,000 ceiling), ESI if your gross is ₹21,000 or less, professional tax and income tax — and under the new regime a salary of up to ₹12,75,000 pays no income tax at all.

• Salary slip generator

  A salary slip lists the month’s earnings — Basic, HRA and allowances — then the deductions — PF at 12% of Basic, ESI if gross pay is ₹21,000 or less, professional tax and income tax — and the net pay in figures and in words. Fill in yours and download it as a PDF.

Facto Lite records each revision with the date it applies from, issues this letter from the employee’s record, and flags the months owed as arrears when it’s backdated. See Payroll.