Salary Increment Acceptance Letter Template for Indonesia

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Key Requirements PROMPT example:

Salary Increment Acceptance Letter

"I need a Salary Increment Acceptance Letter for our senior software engineer who is receiving a 15% performance-based salary increase effective March 1, 2025, with the letter needing to include specific mention of their outstanding project delivery and leadership contributions."

Document background
The Salary Increment Acceptance Letter is a crucial document in Indonesian employment relationships that formalizes the agreement between an employer and employee regarding compensation changes. This document is typically used when an organization implements salary increases due to annual reviews, performance-based promotions, or market adjustments. It serves as an addendum to the existing employment contract and must comply with Indonesian labor regulations, particularly Law No. 13 of 2003 on Manpower and related wage regulations. The letter includes essential details such as the new salary amount, effective date, and any modifications to benefits, while confirming that other employment terms remain unchanged. This documentation is important for both legal compliance and maintaining clear employment records.
Suggested Sections

1. Letter Header: Company letterhead, date, reference number, and addressee details

2. Subject Line: Clear indication that this is a Salary Increment Letter

3. Employee Information: Employee's name, ID number, current position, and department

4. Current Compensation Details: Statement of current salary and benefits package

5. New Compensation Details: Clear specification of the new salary amount and any modified benefits

6. Effective Date: Explicit mention of when the salary increment takes effect

7. Confirmation Statement: Statement that all other terms and conditions of employment remain unchanged

8. Acceptance Declaration: Space for employee to acknowledge and accept the new terms

9. Signature Block: Areas for authorized company representative and employee signatures

Optional Sections

1. Performance Recognition: Optional section acknowledging the employee's performance that led to the increment, used when the increase is merit-based

2. Modified Job Responsibilities: Include when the salary increment is accompanied by changes in job duties or responsibilities

3. Confidentiality Clause: Statement about maintaining confidentiality of salary information, used in organizations where salary privacy is emphasized

4. Tax Implications: Brief explanation of tax implications if there's a significant change in tax bracket, used for substantial increases

5. Review Period: Information about the next scheduled salary review, included when part of company policy

Suggested Schedules

1. Revised Benefits Schedule: Detailed breakdown of any modified benefits package, if applicable

2. Salary Component Breakdown: Itemized list of basic salary and allowances as per Indonesian labor law requirements

3. Performance Metrics Summary: Summary of performance evaluation leading to increment, if merit-based

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Manufacturing

Technology

Financial Services

Retail

Healthcare

Education

Construction

Professional Services

Hospitality

Mining

Agriculture

Transportation

Telecommunications

Energy

Real Estate

Relevant Teams

Human Resources

Legal

Finance

Payroll

Operations

Administration

Compliance

Relevant Roles

Human Resources Director

HR Manager

Compensation and Benefits Manager

HR Business Partner

Personnel Manager

HR Administrator

Legal Counsel

Finance Director

Finance Manager

Payroll Manager

Department Manager

Line Manager

Operations Manager

General Manager

Managing Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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