Employee Raise Letter Template for Saudi Arabia

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Employee Raise Letter

"I need an Employee Raise Letter for a senior software engineer in our Riyadh office, documenting a 15% salary increase effective March 1, 2025, which includes new team lead responsibilities and updated performance targets."

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What is a Employee Raise Letter?

The Employee Raise Letter is a crucial document used in Saudi Arabian employment relationships to formally document salary increases and related changes in employment terms. It serves as an official record required by the Saudi Labor Law and must comply with various regulatory requirements, including the Wage Protection System (WPS) and MHRSD documentation standards. The letter typically follows a salary review, performance evaluation, or promotion decision, and includes essential information such as the new salary amount, effective date, and any changes in benefits or responsibilities. This document becomes part of the employee's permanent record and may be required for various regulatory reporting purposes, including social insurance (GOSI) calculations and Saudization program compliance.

What sections should be included in a Employee Raise Letter?

1. Letter Header: Company letterhead, date, reference number, and formal addressing of the employee

2. Employee Information: Full name, employee ID, current position, and department

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

4. Raise Details: Clear specification of the new salary amount, percentage increase, and effective date

5. Acknowledgment of Service: Brief recognition of employee's contribution and performance

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

7. Signature Block: Space for authorized signatory, employee signature, and date

What sections are optional to include in a Employee Raise Letter?

1. New Responsibilities: Include when the raise is accompanied by changes in job duties or responsibilities

2. Performance Criteria: Include when the raise is tied to specific performance metrics or goals

3. Benefits Adjustment: Include when there are changes to other benefits or allowances

4. Probationary Period: Include when the raise is subject to a probationary or review period

5. Confidentiality Statement: Include when there's a need to emphasize the confidential nature of compensation information

What schedules should be included in a Employee Raise Letter?

1. Detailed Compensation Breakdown: Itemized list of salary components, allowances, and benefits

2. Job Description Update: If the raise includes role changes, attach updated job description

3. Performance Review Summary: If the raise is performance-based, attach relevant evaluation documentation

4. GOSI Calculation Sheet: Updated social insurance contribution calculations based on new salary

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

Banking and Financial Services

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Hospitality

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Media and Entertainment

Public Sector

Relevant Teams

Human Resources

Legal

Finance

Payroll

Compliance

Employee Relations

Compensation and Benefits

HR Operations

Relevant Roles

HR Manager

HR Director

Compensation and Benefits Manager

Legal Counsel

Department Manager

Finance Director

HR Business Partner

Compliance Officer

Employee Relations Manager

Payroll Manager

Human Resources Specialist

General Manager

Chief Human Resources Officer

HR Operations Manager

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Teams

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