Increment letters are typically given at the start of the fiscal year or quarterly when employees meet their company’s goals. When an employee is working well and completing his or her goals on time, he or she receives this letter.

When an employee receives an increment letter, he is given a raise in his salary. If an employee has been working in an organization for a long time and has not received a raise in his salary, he can write a letter to his human resources department requesting an increment and expressing his needs and efforts he has put in during his time there.