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Promotion letter

Reviewed by Clausery editors · · 2 min read

A formal letter confirming a promotion: new title, reporting manager, increased salary or bonus, effective date and any changes to benefits or responsibilities.

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A promotion letter formalises the good news in writing - new role, compensation, start date and reporting line. It gives the employee something to sign and updates the HR file.

Pair it with a conversation so the employee can ask questions about expectations, goals and the transition before the letter is sent.

What to include#

  • Congratulations and new role. Opening congratulations, new job title, department and reporting manager.
  • Effective date. Date the promotion takes effect and any transition or handover plan for the old role.
  • Compensation. New salary or hourly rate, bonus/commission change, pay-grade adjustment and any equity refresh.
  • Benefits and perks. Changed benefits (car allowance, bonus eligibility, extra PTO) and the updated benefits guide.
  • Acceptance. Deadline to sign and return, and who to contact with questions.

How to fill it in#

  1. Step 1: Have the conversation first

    Tell them in person or on a call before the letter arrives.

  2. Step 2: Confirm new title and pay

    Set title, reporting line, effective date, new salary and any bonus or equity.

  3. Step 3: Update benefits

    Flag any changes in benefits, PTO or bonus eligibility tied to the new grade.

  4. Step 4: Set expectations

    Attach or reference the updated job description, goals and KPIs.

  5. Step 5: Send and celebrate

    Send the letter, have them sign a copy for HR, and announce the promotion.

Salary increase letter

For a pay rise without a role change.

Offer letter

For external new hires.

Employment verification letter

Proof of new title or pay when the employee needs it.

Reference letter

If they leave later, they will ask for one.

Free HR letter templates

Full HR letter set.

Questions

Is it a new contract?

Usually an amendment to the existing agreement; existing terms (at-will, confidentiality, covenants) continue unless changed.

Do I need a new employment agreement?

For major moves (to executive or with new restrictive covenants) a new agreement may be appropriate; routine promotions usually need only the letter.

Can I backdate it?

No - the effective date should be when the new role and pay actually start.

Announce internally?

Yes, after acceptance, announce the promotion to the team with the employee's input on timing.

Can they decline?

Yes, and it should not be held against them. Discuss why and explore alternatives.

Browse all templates →

These are general templates, not legal or tax advice. Have anything unusual reviewed for your jurisdiction.

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