Confirms a compensation adjustment outside a promotion: the new amount, the effective date, and the rationale, with signatures from both parties. Use it to keep compensation history clear and documented.
This letter confirms an adjustment to your compensation. It records the new amount, when it takes effect, and the reason for the change, and becomes part of your employment record once both parties sign.
Company name (the "Company") is pleased to confirm that the base salary of Employee full name, in the position of Role title, will change as follows:
All other compensation elements remain as stated in your employment agreement.
This adjustment reflects: Reason for adjustment.
Typical reasons include a market or internal-equity review, sustained strong performance, expanded responsibilities within the same role, or a scheduled compensation review. Recording the reason keeps the compensation history clear for both parties and gives future reviews a documented starting point.
Please sign below to acknowledge the new compensation. If anything in this letter does not match your understanding of the change, raise it with your manager or the people team before signing so the record can be corrected first.
Employee: ✍ Employee signature Date: Employee signature date
For the Company: ✍ Company signature Date: Company signature date
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Not legal advice
This template is provided for general informational purposes only and is not legal advice. Laws differ by jurisdiction and change over time — have a qualified professional review any document before you rely on it.
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