Free Annual Appraisal Letter Generator

The appraisal letter is one of the most-read HR documents of the year. It should communicate the outcome clearly — revised CTC, percentage increase, effective date — alongside a short manager note that connects the raise to the employee's performance.

APPRAISAL LETTER

Company (letterhead)

Company name

Address

Phone

Logo

Signatory name

Signatory title

Employee

Full name

Designation

Department

Letter date

Letter details

Review period

Currency

Current CTC

Revised CTC

Effective date

Increase

0.00%

Manager comments

What the Appraisal Letter Generator does

An appraisal letter is a formal document issued during a company's annual or scheduled review cycle, confirming an employee's revised compensation, the percentage increase over their prior CTC, and manager feedback tied to performance.

Methodology and formula

Percentage increase = ((Revised CTC − Current CTC) / Current CTC) × 100, shown alongside the effective date and manager comments.

Worked example

Inputs: Current CTC ₹9,60,000; revised CTC ₹11,04,000; effective 1 April; rating: Exceeds Expectations.
Result: Increase percentage 15%; letter shows both CTC figures and the computed increase.

Showing the exact 15% rather than leaving the employee to calculate it themselves avoids the awkward follow-up email when their own spreadsheet gives a slightly different number due to rounding.

When to use this tool

Use the appraisal letter for the scheduled annual review cycle. Use the Salary Hike Letter for off-cycle compensation changes such as promotions or retention offers, and the Pay Stub Generator to reflect the new salary from the next pay period.

About the Appraisal Letter Generator

What makes an appraisal letter memorable

The revised number is important, but the tone is what employees remember. A short, personal manager comment about specific contributions turns a transactional letter into a moment. Copy-paste appraisal letters signal to top performers that they are just a number.

Percentage increase, done right

Show current CTC, revised CTC and the percentage difference. Employees will compute it anyway — putting it in the letter avoids awkward conversations about why the letter and their spreadsheet don't match.

Timing and delivery

Deliver appraisal letters in a one-on-one, not by mass email. The letter is the record; the conversation is what makes the letter land.

Frequently asked questions

Does the letter auto-calculate the hike percentage?

Yes — enter current and revised CTC and the percentage increase is computed and shown on the PDF.

Can I use it for a promotion?

For a promotion with new designation, use both the Appraisal Letter (for the revised CTC) and the Appointment Letter (for the new role terms).

Should I mention performance rating?

Optional — many companies include it in the manager comments section.

What effective date should I use?

The first day of the next pay cycle after the appraisal cycle closes.

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