The decision to increase your pay reflects your valuable contribution to our team. You have consistently shown great initiative and professional skills.This document is a letter script template used to notify an employee of a bonus or incentive plan payment. Need to write a salary increase letter to an employee? Follow these step-by-step instructions to write your own, or steal one of our pre-made templates. I am pleased to inform you that your salary is being increased as of {{ salary_effective_date }}. This article on salary increment letters explains the format of writing an appraisal letter. What is a Bonus Plan? A bonus plan is an agreement between the employer and employee to pay out a predetermined amount of money based on performance.