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Sample Salary Increase and Pay Review Letter

A worked employer letter confirming a salary increase, effective date, payroll treatment, review expectations and continuing employment terms.

Jurisdiction: Illustrative England and Wales employment letter — contract, payroll, tax, pension and equality requirements must be checked

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Important: This sample provides general legal information only and is not legal advice. Check the law, prescribed forms and signing requirements that apply to your exact jurisdiction and circumstances before use.

SALARY INCREASE AND PAY REVIEW LETTER

Important jurisdiction and employment warning

This fictional letter is an illustrative employment communication, not legal advice and not a universally valid variation of a contract. It is written for an employee working in England and Wales. The employer must check the employment contract, any collective agreement, national minimum wage rules, working-time requirements, pension duties, tax and payroll treatment, equal-pay and discrimination law, and any approval required by its governance documents. A pay increase may require a formal variation, and a future review is not a promise of another increase. The parties should confirm the exact terms before relying on this letter.

To

Nathaniel Owen Price

48 Meadowgate Avenue, Bristol BS5 9RD

From

Celia Frances Morton, Finance and People Director

Westhaven Marine Instruments Ltd

26 Anchor Foundry Road, Bristol BS2 0SY

Date: 4 November 2026

Dear Nathaniel,

1. Recognition and revised salary

I am pleased to confirm that, following the annual pay review, the board has approved an increase to your basic salary. You are employed as Senior Calibration Engineer, and your annual gross salary will increase from £41,800 to £45,200, an increase of £3,400. The new salary takes effect on 1 December 2026 and will be paid monthly in arrears through the company's normal payroll, subject to income tax, National Insurance, pension deductions and any other lawful or authorised deduction.

Your first payslip showing the new annual rate is expected to be issued on 31 December 2026. If payroll processes the December change after its cut-off, the company will correct any shortfall in the next practicable payroll and show the adjustment separately. The salary is stated gross; the amount you receive after deductions will depend on your tax code, pension choices, benefits, repayment obligations and other lawful payroll information.

This increase recognises your work leading the marine sensor recalibration project, training Leila Rose Hammond and introducing the fault-tracking procedure adopted by the Bristol workshop. It is not payment for any hours beyond those authorised by your manager, and you must continue to record time and obtain approval for overtime or other additional work under the employee handbook.

2. Continuing terms

Except for the basic salary change confirmed in this letter, your existing contract dated 12 February 2023, as later varied in writing, remains unchanged. Your normal place of work is Westhaven's Bristol facility at 26 Anchor Foundry Road, your notice period remains three months, and your holiday, pension, benefits, confidentiality, intellectual property and performance provisions continue to apply. This letter does not change your job title, duties, hours, probation status or entitlement to statutory payments.

The company will make any required pension contribution based on the pension scheme rules and pensionable-pay definition. If you use salary sacrifice or another benefits arrangement, please ask Payroll how the revised salary affects it. The company cannot give personal tax or financial advice. You should check any effect on tax, student-loan repayment, benefits or pension planning with an appropriately qualified adviser.

3. Future review and variable reward

The next ordinary salary review is scheduled for October 2027. A review means that the company may consider role scope, performance, market information, affordability, internal consistency and business results. It does not guarantee an increase, and any future change will be communicated separately and will take effect only when properly authorised. A delay or absence of a review does not itself reduce the salary confirmed here.

You remain eligible to be considered under the annual performance bonus plan for the 2026 to 2027 performance year. The plan is discretionary, may depend on company and individual results, and is governed by its written rules. Eligibility or consideration does not guarantee a bonus, and this salary increase does not amend the bonus plan. Any bonus will be subject to applicable tax and payroll deductions.

4. Acceptance and questions

Please read this letter with your contract and the current policies. If you believe the revised salary, effective date or job details are inaccurate, contact Megan Louise Cole, Payroll Manager, at payroll@westhavenmarine.example.test or 0117 555 2049 by 18 November 2026. Questions about the reasons for the increase may be directed to me. We will correct an administrative mistake but will not treat an unapproved communication as a further contractual promise.

Please sign below to acknowledge receipt and your understanding that the salary change is effective from 1 December 2026. Your signature acknowledges receipt; it does not waive any statutory right or confirm acceptance of an unlawful term.

Yours sincerely,

Celia Frances Morton

Finance and People Director

Signature: ____________________ Date: 4 November 2026

Acknowledgement

I, Nathaniel Owen Price, acknowledge receipt of this letter and understand the revised basic salary and effective date.

Employee signature: ____________________ Date: 6 November 2026

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