Salary Increase Rejection Letter Template for Indonesia

The Salary Increase Rejection Letter is a crucial document in Indonesian employment relations, used when an organization needs to formally decline an employee's request for a salary increase. This document must be drafted in accordance with Indonesian labor laws, particularly Law No. 13 of 2003 on Manpower and Government Regulation No. 78 of 2015 on Wages. It serves multiple purposes: documenting the decision, maintaining clear communication with the employee, providing transparent reasoning for the rejection, and ensuring compliance with legal requirements for employment-related communications. The letter should be used when a formal salary increase request has been received and reviewed, but cannot be granted due to various factors such as business conditions, performance criteria, or budgetary constraints. It's essential that the document maintains professionalism while being clear about the decision and future opportunities.

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee with their complete name and position

2. Subject Line: Clear indication that this is a response to salary increase request

3. Opening Acknowledgment: Recognition of the employee's request for a salary increase and when it was received

4. Decision Statement: Clear and direct statement of the rejection decision

5. Explanation: Professional explanation of the reasons for rejection, such as business conditions, performance metrics, or budget constraints

6. Positive Elements: Recognition of the employee's contributions and value to the organization

7. Future Prospects: Information about when the next salary review might occur or what conditions might lead to a future increase

8. Closing: Professional closing statement with appreciation for understanding

9. Signature Block: Name, title, and signature of the authorized person (usually HR Manager or Department Head)