Salary Review Proposal Template

The proposal for salary review is a formal document that is written and prepared by an employee of a company to be submitted to his employer. The main purpose of this proposal preparation is the demand of the employee to review (direct or indirect increase) his salary by considering his job responsibilities, skills, experience, capabilities, etc.

An employee may feel that he deserves more than what he is getting paid by the company. It is important to bring this feeling into the employer’s attention to avoid the demotivation of the employee, leading to his decreased productivity for the company. To make the employer aware, the employee may prepare a proposal for his salary review and present it to his superior for consideration.

In this proposal, the employee needs to convince the employer about his worth and how he is a valuable asset to the company and so deserves an increment. As this proposal may serve as a tool to market the employee in his employer’s eyes, he should make this proposal very carefully. Some of the considerations are:

  • The proposal should be comprehensive, professional and formal.
  • It needs to be persuasive.
  • The employee should emphasize his expertise, skills, experience, and capabilities.
  • The employee should clearly state the reason why he thinks his salary needs to be reviewed.
  • The request or demand, in terms of direct or indirect increase, should be clearly stated to avoid any misunderstandings and confusions.
  • A reference to the market rates of similar job titles can be presented politely.
  • The reasoning and evidence (if any) by the employee play a key role in convincing the employer to fulfill the employee’s demand.
  • The increment being requested should be practical and feasible.
  • The requested review should be in line with company policies.

When an employee is requesting a salary review, he may ask for a direct or indirect increase. The direct increment, for instance, may include a 10% increase in the salary figure. As for the indirect increase, an employee may request to increase any sort of fringe benefits, such as health insurance increase.

As the demand or request of the employee may vary in different situations and different companies, the proposal for salary review is prepared accordingly. However, the general details included remain the same, which are:

  • Employer details.
  • Employee details.
  • Employee’s worth in terms of his skills, experiences, abilities.
  • Demand or request for the salary review.
  • Persuasive statements.
  • Market rates of similar jobs.
  • Reasoning and evidence.

An employee may prepare the complete proposal from scratch by himself or use an available template by downloading and customizing it. The later option reduces the time and effort needed by the employee to prepare this proposal.

It is the employer’s discretion to accept or reject the proposal. If it gets accepted, the employee gets the increment. Else, the employee either has to work on the same package or leave the job.

The sample proposal

Salary review proposal is a yearly valuation or evaluation of each employee’s salary slips depending upon his overall performance and commitments. On this basis, it will be decided whether the employees’ pay should be increased or not. Following is given a sample proposal for help.

To:      James Charles
XYZ Market Research Company
New York City, NY

Date:   6th April 2019

Dear Mr. Charles,

I have been working with this company for the past 5 years and I am delighted to be a part of the team. Recently, my responsibilities have been updated and I have been given the department of Client Servicing as well. I am now handling new tasks and duties that were previously not a part of my job description. I believe that this shows that the company has faith and trust in me. I am excited and will continue to deliver my very best.

It has been 2 years since my last salary review. As we are approaching the annual mark, I would like for you to review my salary status. I believe I have performed very well in the last quarter and have been consistent throughout the year.

Professional Achievements

I have been an integral part of the team and accomplished my targets and gotten excellent client feedback, which is in line with the company’s vision of ‘keeping the clients happy’. Just in the last 4 months, I have achieved the following:

  1. Played a leadership role in acquiring one of the largest accounts of ABC Company.
  2. In just 4 months, we have captured 3% market share from our competitors, by switching their strategic clients to our company.
  3. Introduced a new process in the Sales Department, which has saved the company $50k in annual revenue.
  4. I have been consistently exceeding my sales quota and last month I reached 130% of my monthly target goal.

Cost-of-Living Measurement

Looking at the recent economic indicators, the Consumer Price Inflation is at 10%, which is primarily driven by an increase in the house rents and fuel prices. House Rents have increased by 15% over the last couple of years. This has greatly affected my monthly expenditure. A 10% increase in the House allowance and car allowance and a 15% rise in my basic salary would bring my compensation in line with the market rate of this part of the region. I would like to maintain the standards of my lifestyle.


My contribution to the company over the past 5 years has made a tangible, significant and a positive difference. I have a Master’s degree in International Business and 7 years of experience. The work environment has gotten very demanding and I have been consistently bringing in more accounts and performing above expectation. With an extensive background in national and international methodology for market and statistical research, I have been providing my expertise in marketing strategies for years.  I enjoy my work here and I am very grateful for all the opportunities that the company has given me. During this time my behavior with my fellow workers has been respectful and professional. My annual HR reviews have been excellent. I have always completed my targets on time and achieved my goals. However, I am still working for the salary we agreed upon 2 years ago. I am respectfully requesting an immediate pay review.

Expected Review

I expect the basic salary, car allowance, and the housing allowance to be reviewed. I am satisfied with the telephone and medical allowances.

Items Salary




Basic Salary $5000 $5750 with 15% increment
Housing Allowance $1000 $1100 with 10% increment
Car allowance $500 $550 with 10% increment
Telephone $300 $300
Medical Allowance $300 $300


I look forward to having a discussion with you in the near future. Please let me know a convenient time when you are available. I hope you consider my proposal based on all the credentials I have provided. I will continue to carry out my duties efficiently and with the same dedication.

Thank you for your time and consideration.


Bill Thomas

Senior Executive,

XYZ Market Research Company

New York City, NY


[email protected]


Salary review proposal

Format: MS Word [.docx] 2007/2010
File Size: 56