MAKE YOUR FREE Pay Rise Request Letter

This Pay Rise Request Letter template covers:

• your employer’s details 

• your details, including your current role and current salary or wage

• when you last received a raise

• your request for a pay review and increase 

• why you’re requesting a raise 

• how much you would like your salary or wage to increase by

While using a Pay Rise Request Letter is not essential, it is a good way to formally request a salary increase from your employer. A Pay Rise Request Letter outlines your reasons for requesting a raise and can help ensure that your employer clearly understands your request. 

Pay Rise Request Letters are often used by employees who believe that they deserve a pay increase due to increased job responsibilities, significant contributions to the employer’s business, or changes in market conditions that warrant a higher wage or salary. By using a Pay Rise Request Letter you demonstrate your professionalism and show that you are serious about your career and that you value your contributions to the business. A Pay Rise Request Letter can also act as the starting point for negotiations with your employer. It can help you to present your case and negotiate the terms of your pay rise.

While the terms ‘salary’ and ‘wage’ are often used interchangeably, they have slightly different meanings. 

A salary is a fixed amount that an employee is paid annually regardless of the number of hours worked. It tends to be divided into equal payments that are paid at equal intervals (eg monthly or weekly). Salaried employees (ie those receiving a salary) are usually employees who have a consistent workload throughout the year, such as office workers. 

A wage is an hourly (or daily) rate paid to employees or workers. Wages are often paid weekly or bi-weekly based on the number of hours worked. Those paid a wage are often hourly workers and zero-hours workers, like retail staff, hospitality staff or tradespeople. An hourly wage cannot be below the current minimum wage.

For more information, read Wages and payslips.

You can request a pay raise at any time. However, it is important that you carefully consider the timing of your request and your reasons for requesting the increase. Common examples of when you may want to consider requesting a pay raise include when: 

• you’ve worked for your employer for a significant amount of time and have been performing well without receiving a promotion or raise

• your job responsibilities have increased significantly since you started in your current role (eg you have taken on more tasks or are managing more team members)

• you’ve consistently been delivering high-quality work and exceeding management expectations

• you’ve obtained additional education or training or have gained new skills that are valuable to the business 

• market conditions have changed and average wages or salaries for your role have increased 

In general, it is a good idea to request a pay rise during your annual or bi-annual performance review or when you have completed a major project or achieved a significant accomplishment. It's also important to make sure that your request is reasonable and supported by your performance and contributions to the business. It is a good idea to attach your most recent employee evaluation to your Pay Rise Request Letter as proof of your performance.

The amount of your requested raise can vary depending on many factors, including your: 

• industry

• role and performance

• experience

• employer's financial situation

Generally speaking, a requested pay rise should be based on your current salary/wage, your job responsibilities, your performance and the current market rates for your role. 

In terms of how much of a pay rise to request, it's a good idea to do some research on the average pay range for your job role in your industry and geographic location. This can help you to determine what a reasonable pay rise would be. 

A typical pay rise is usually between 2% and 10% of your current salary/wage, although some industries or roles may see higher pay increases. It's also important to consider other benefits or perks that may be available, such as improved workplace benefits or bonuses. 

Ultimately, the amount of your pay rise will depend on the negotiation between you and your employer. It's important to make a strong case for your request based on your performance, contributions, and the value you bring to the business.

In this Pay Rise Request Letter, you can choose to request a percentage or fixed-amount increase in your pay.

By sending your Pay Rise Request Letter you formally request that your employer reviews your salary/wage and increase it. Your employer should review your Letter and consider your request. This may involve: 

• assessing your performance - reviewing your past performance (together with any employee evaluations) and determining whether a pay rise is justified based on this 

• reviewing workplace policies - reviewing the business’ internal policies on pay increases, such as annual reviews or pay scales. This will help them determine whether a pay rise is possible

• responding to your Pay Rise Request Letter - your employer will typically respond to your request in writing, either accepting the request, offering a different pay increase, or rejecting the request. In some cases, the employer may also request a meeting with the employee to discuss the request in more detail 

If the employer offers a different pay increase than the one proposed in your Letter, you may choose to negotiate the offer further or to accept it. This is a decision for you to make. 

If your employer rejects your request, you can choose to take further action, such as filing a formal grievance (eg using a Grievance letter), looking for other employment opportunities or resigning. It is always a good idea to ask your employer to provide feedback on why the request was denied. 

If you think that you are being discriminated against (eg because of your gender), Ask a lawyer for more information about what you can do to manage this situation.