Template: Salary Increase Confirmation Letter
This template confirms a salary increase in writing, setting out the new gross salary in CHF, effective date, and pensum. Swiss employers should issue this promptly after agreement to avoid misunderstandings and create a clear employment record.
A salary increase agreement must be documented in writing. This template covers the essential elements: new gross annual salary, effective date, and any change to pensum percentage. Adapt it to your situation and send it within days of the decision.
Keep a signed copy on file. If the employee is subject to source tax (Quellensteuer), confirm this remains in place. If the increase triggers a change to benefits or working hours, note that separately.
Letter text (copy and edit)
[Date] [Employee name] [Address] Dear [Employee name], Following our discussion on [date], we are pleased to confirm your salary increase, effective [date].
Your new gross annual salary is CHF [amount], for a pensum of [%]. All other terms of your employment contract remain unchanged. This letter confirms our verbal agreement. Please sign and return a copy to us for our records. Yours sincerely, [Your name and title]
- Insert the date of your conversation or decision meeting.
- State the effective date (first of the month is standard in Switzerland).
- Write the gross annual amount in CHF, not net or hourly.
- Confirm pensum as a percentage (100%, 80%, 50%, etc.).
- Leave other terms unchanged unless you are also varying role, location, or hours.
- Request a signed countersign if your internal process requires it.
What to check before sending
Verify the new salary complies with your budget and any collective labour agreement (GAV) that applies to your sector and canton. If the increase results from a formal promotion, issue a new employment contract or a formal addendum instead.
Confirm the employee's tax residence and source-tax status. If they are subject to Quellensteuer at source, the salary increase may trigger a recalculation; notify your payroll or tax advisor.
- Check your collective agreement (GAV) for any salary grid or review schedule.
- Align with your annual budget cycle or business plan.
- If role, location, or hours change, create a formal contract addendum, not just a salary letter.
- Confirm the employee is in the correct canton and tax bracket for your records.
- If the employee is a non-resident foreign worker, source tax applies; verify with your tax advisor.
- Issue the letter before the effective date so there is no pay-slip confusion.
Legal notes
Employment contracts in Switzerland are modified by written agreement. A salary increase letter counts as written confirmation of a contract change. Both you and the employee should keep a copy.
No notice period is required to grant a salary increase; it takes effect on the date stated. If you later reduce salary, Swiss law generally requires one month's notice, unless the employment contract allows otherwise. Consult a lawyer if you plan any wage reduction.
- No formal notarisation is required; a letter or email is sufficient.
- The effective date you state is binding; select the first of a month to avoid payroll errors.
- If the employee disputes the increase later, a signed copy protects you both.
- Salary increases are taxable income from the effective date; update your payroll system.
- Do not confuse a salary increase with a one-off bonus or 13th-month payment (Gratifikation).
- If the employee is on notice or departing, confirm the increase end date in writing.
Frequently asked questions
- Does the salary increase need to be signed by the employee?
- Swiss law does not require a countersignature, but it is good practice. A letter sent by email with a request for acknowledgment creates a clear record. If your employment contract requires amendments in writing and signed by both parties, ask the employee to sign and return a copy.
- What if the employee is subject to source tax (Quellensteuer)?
- Inform your payroll processor or tax advisor of the new salary immediately. Quellensteuer is recalculated on the new gross amount from the effective date. You must ensure correct deduction and timely payment to the tax authority. The increase does not change the employee's tax residence or status.
- Can I give a salary increase verbally, or must it be in writing?
- Swiss employment law recognises written agreements as the safest form. A verbal agreement is binding, but a written letter issued afterwards—and kept on file—prevents disputes. Always document salary changes in writing within a few days of agreement.
General information for Swiss employers, not legal advice. Have a lawyer confirm anything with legal consequences.