How to Write a Professional Surat Kenaikan Gaji (with Samples)

Salary discussions can be sensitive, but they are an important part of managing a team.

When it’s time to give a raise, a formal salary increment letter helps make the process clear and professional for both the employer and the employee.

Read the article below to understand the reasons for providing salary increments, including letter templates and how to discuss and process salary increases with your employee.

What is a Salary Increment Letter?

A salary increment letter, or surat kenaikan gaji, is a formal document used by employers to inform employees of an increase in their salary. It typically explains the reason for the increment, the new salary amount, and the date the new salary will take effect. 

It helps document the decision clearly and gives employees written proof of the change. In Malaysia, this letter can be issued in English or Bahasa Melayu.

Why Should You Give a Salary Increment Letter?

There are many business reasons to issue a salary increment letter. One of the most common is performance. If an employee consistently meets or exceeds expectations, giving them a raise can help keep them motivated. 

Another reason is promotion. When someone is promoted, their responsibilities increase, and it makes sense to adjust their pay accordingly.

Sometimes, companies review salaries because of market adjustments. If the industry standard goes up and the company wants to stay competitive, salary adjustments might be necessary.

Inflation is also a factor. As living costs rise, reviewing salaries helps employees maintain their standard of living. 

Lastly, issuing a salary increment can be a way to retain employees. When good employees feel recognised, they are more likely to stay with the company.

How to Discuss Salary Increment with Employees

Talking about salary can feel awkward, but it’s part of leading a team. These conversations should be handled carefully and respectfully. 

The best time to bring it up is during performance reviews, after a big project is completed successfully, or when there’s a clear reason like a promotion.

When you talk to employees, be honest and specific. Explain why the increment is happening. If it’s performance-based, mention what they did well. If it’s due to a new role or responsibilities, talk about what changed. 

Keep the tone positive and focus on the value the employee brings to the company. Make it clear that the company appreciates their contribution.

Email Templates for Salary Increment Communication

Template in English

Template in Bahasa Melayu

Chat Invitation for Salary Increment (WhatsApp)

English Version

Hi [Name], I’d like to schedule a quick meeting to talk about your recent performance and contributions to the company. It’s a short discussion regarding your current role and next steps. Are you free today or tomorrow for a quick catch-up at the office?

Bahasa Melayu Version

Hai [Nama], saya ingin menjadualkan pertemuan ringkas untuk berbincang mengenai prestasi dan sumbangan anda baru-baru ini kepada syarikat. Ia berkaitan peranan anda sekarang dan langkah seterusnya. Adakah anda lapang hari ini atau esok untuk bertemu sekejap di pejabat?

Salary Increment Letter Sample

English Version

Bahasa Melayu Version

7 Steps to Implement a Salary Increase Process

Here is a clear step-by-step process for implementing a salary increase:

1. Review employee performance and contributions

Start by evaluating the employee’s overall performance. Look at achievements, consistency, and how their work has contributed to team or company goals. This helps you decide whether the employee has earned a salary increase.

2. Benchmark salaries with industry standards

Compare the employee’s current salary with others in similar roles in your industry. This helps you determine whether your pay scale is competitive and fair.

3. Get budget approval

Check if the company can support the salary increase. You may need to get approval from your finance department or leadership team to proceed.

4. Draft increment justification

Prepare a short explanation outlining why the increment is given. This document will help with internal approval and make the conversation with the employee more transparent.

5. Prepare formal documentation

Draft the salary increment letter and get all supporting documents ready. Include the amount, reason, and effective date.

6. Meet with the employee to inform

Arrange a meeting to personally communicate the news. Give feedback, explain the reason behind the increment, and hand over the letter.

7. Issue the official increment letter

After the meeting, formally give the employee the letter. This acts as a written confirmation and keeps everything documented.

Negotiating a Salary Increase With Staff If Staff Demand More

If an employee requests a salary increase, take the time to evaluate it properly. Look at their performance, their current pay, the company’s financial situation, and whether others in the same role are getting paid more.

If you agree with the request, follow the proper steps to make it happen. If you can’t give the full amount they ask for, be honest and explain why. 

Sometimes, a smaller raise or other benefits can still show appreciation. If the request is rejected, communicate it in a respectful way. Always explain your decision clearly to maintain trust.

FAQ

When should employers give salary increments?

Salary increments should be given after a structured performance review, especially when employees have shown consistent effort, achieved key goals, or taken on greater responsibilities. 

It’s also appropriate after a promotion, when adjusting salaries to match market standards, or in response to rising living costs. 

Is a written letter required for a salary increase?

Yes. A written letter is important because it formally records the salary change and provides clear details for both the employer and employee. 

It helps avoid misunderstandings by stating the new salary amount, the effective date, and the reason for the adjustment. This written confirmation also supports proper documentation for HR and payroll purposes.

What should be included in a salary increment letter?

A salary increment letter should clearly state the:

• Employee’s name

• Position

• The new salary amount

• The effective date of the change. 

• The reason for the increment such as performance, promotion, or company adjustment.

The tone should remain professional and appreciative, showing recognition for the employee’s contribution. Optionally, employers can include a contact point in case the employee has questions about the change.

Can increments be backdated?

Yes, salary increments can be backdated, but this must be clearly stated in the salary increment letter.

The letter should mention the exact date from which the new salary takes effect, even if it is earlier than the date of the letter. 

Backdating is sometimes used when approvals take time or when the increment is tied to a past performance period or project completion.

How to handle multiple increment requests?

When facing several salary increment requests, evaluate each one fairly and based on clear criteria. 

Start by reviewing individual performance, job responsibilities, current salary levels, and how they compare to market standards. Also consider the company’s budget and business priorities. 

Handle requests case by case, and avoid making decisions based on pressure or urgency. If some requests cannot be approved, communicate the decision respectfully and explain the reasoning to maintain transparency and trust.

Review each case individually, based on performance, role, and budget.

How to respond if the employee rejects the increment amount?

If an employee rejects the increment, start by having a calm and open conversation to understand their concerns. Ask why they feel the amount is not sufficient and listen carefully. Reassess the situation based on their performance, market benchmarks, and company budget.

If an adjustment is not possible, explain your decision clearly and respectfully. You may also explore other forms of recognition, such as non-monetary benefits or a review at a future date.

Keeping the dialogue professional helps maintain trust and motivation even if both sides don’t fully agree.

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