How To Ask For an Increase in Salary (Steps and Example)

By Indeed Editorial Team

Updated 23 October 2022

Published 11 October 2021

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

An employment agreement essentially details the tasks an employee agrees to perform in exchange for a specific salary. Your compensation depends on many factors, including your qualifications, years of work experience and the company's expectations of you. If you feel that you're insufficiently compensated, you may ask for a salary increase in a tactful and professional manner. In this article, we explain how one should best ask for an increase in salary, and end with a sample letter of an employee requesting one.

Related: What Is Net Salary: Definition and Guide To Calculating Net Salary

How to ask for an increase in salary

When requesting an increase in salary, it is best to submit an official written request to ensure that a formal record goes in your employee file. Consider these 5 steps to help you request a salary increase:

1. Understand your company's compensation policies

Start your process by becoming better acquainted with your company's compensation policies. Many companies offer annual pay raises to top-performing employees after yearly performance reviews.

2. Research the market pay rate

Next, find out what the national average salary for your role is. You can use online resources such as Indeed Salaries, which calculates national average salaries. Take note that online resources may not consider local market conditions and other special factors.

3. Use your network and professional associations

Use your network of peers and colleagues to find out what others in similar roles are earning. You may also enlist the help of professional associations in your field to better understand the value of your work.

4. Follow protocol

If you've already followed steps 1-3 and still wish to request a pay raise, it may be wise to consult your company's employee handbook to find out if there is a protocol for doing so.

5. Submit your request

Decide on the best timing for your request, as well as how you plan to deliver it. You may send a written request to your supervisors electronically, or set up an in-person meeting with them.

Read More: How To Negotiate Salary in an Email (With Samples)

Factors to consider before asking for an increase in salary

Think about these questions before you ask for a raise in salary:

1. Why do I feel that I deserve a raise?

You may feel you deserve a pay raise because of the contributions you have made to the company. If so, it may be wise to compile a list of your skills, experience and the projects you contributed to prior to making your request.

2. When was my last salary increase?

If you are a relatively new employee or have already had a pay raise in the previous six months, it is unlikely that your request will be granted.

However, if your last salary increase was over two years ago and you've performed well consistently since then, you may be overdue for a raise.

3. Is this the best time to ask for a salary increase?

The best time to make your request for a pay raise is after a significant work achievement or when the company's profitability is high.

4. How much of a raise do I deserve?

Consider the difference between your salary and the national average and use this as a guide when making your request.

8. How should I respond if my request is rejected?

Prepare for each outcome, even the one you don't want, and be sure to respond tactfully and professionally regardless.

Read More: How To Negotiate a Salary (With Examples)

Example of a written request for a pay raise

Here is a sample letter:

Dear Weixin

I've been a proud team member of Better Way Pte Ltd for over six years now. I enjoy my work and the challenges of my role. During my time in this role, I've increased my workload and continuously taken on additional responsibilities to develop myself professionally and help my team reach its targets. My performance has helped us achieve our sales targets for the past three years.

My work on the restructuring of the customer service process increased the number of sales calls we have been able to accept, and these additional leads have increased our total sales. For the past three years, I've exceeded my individual performance goals every year. Based on the national average salary for my role and my outstanding performance reviews, I believe I deserve a 5% increase in my salary. I've not had a pay raise in the last three years at this company.

I'd appreciate a meeting with you to discuss my request further.

Thank you,

Prahan

Read More: 6 Ways To Start Your Email Right

Disclaimer: The model shown is for illustration purposes only and may require additional formatting to meet accepted standards.

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