Most companies examine their employee’s pay once a year and decide whether or not to raise them. A letter to the staff member(s) affected is a formal means of sharing the good news when a rise has been decided upon.
Also See: Sample Letter of Complaint About Incorrect Billing
Sample 1: Letter informing staff of a pay rise
[full name of employee]
Dear [first name]
I am very pleased to advise you of a change affecting your pay. As you know you are employed on a salary that is locally determined and subject to an annual review based on the market, inflation, and your performance.
As a result of the review which has been carried out by [myself / executive management team/personnel manager], I am very pleased to inform you that your salary has been increased to [new salary], and you will receive it [with immediate effect, from date, etc].
I have been asked to convey this information to you by [executive management team/personnel manager] along with their appreciation of your contribution.