An appraisal letter is given to employees after completing their performance review. If done right, it can be a great motivator for employees, ultimately leading to the success of an organisation. Usually, a company’s HR department issues appraisal letters to employees.

This blog post will discuss everything about appraisal letters and provide free Word (editable) and PDF  templates.

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What is an appraisal letter?

An appraisal letter is a written document stating that the employer has noticed the employee’s contribution to the organisation. In short, it reflects their hard work, and the outcome enhances their morale.

An appraisal letter mentions the strengths and weaknesses of an employee and provides valuable insights. It also helps identify the areas where an employee performed well and what skills they must acquire to perform better during the next appraisal cycle.

How to write an appraisal letter?

An appraisal letter provides clarity and motivation to an employee. However, you need to ensure that you follow the below-mentioned tips:

  • Since the letter is an official document, it should be issued on the company’s letterhead.
  • Start the letter by honestly praising the employees, their work, and accomplishments during the appraisal cycle. While praising, keep the tone professional & polite.
  • If possible, write down the employees’ noteworthy achievements in the appraisal letter. Keep it crisp. 
  • Mention the details of employees’ new salary, revised CTC, increment, and the effective date of the appraisal.
  • Also, include if an employee has received any promotion or bonus. 
  • At the end of the letter, you can spend a little bit of time providing some constructive criticism based on the employee’s performance during the cycle. This feedback needs to be specific and understandable so that the employee can work on it.
  • Finally, close the appraisal letter by outlining what the employee is expected to do in the future. This part should be short and straight. It is better to communicate the expectations in person.
  • Mention that the company looks forward to working with the employee in future.

Appraisal letter format and template




Appraisal Letter – CONFIDENTIAL

Dear [Employee_Name],

Employee ID: [Employee_ID]

[Company_Name] has and continues to move forward because of your hard work and contributions. [Company_Name], as always, stays committed to its people first approach and puts you and your contributions at the forefront.

In continuation to that thought and philosophy, we are taking this opportunity to congratulate and recognise you for your contributions and thank you for all your efforts.

In recognition of your performance and contributions to [Company_Name], we are delighted to promote you to [Employee_Designation] and revise your Cost to Company to INR 330000, effective from [Appraisal_Date] The break-down of your CTC is mentioned in Annexure A.

We wish you tremendous success in the coming years and look forward to your long-term association and contributions to [Company_Name].



Annexure A

This is your expected monthly salary structure.
Salary Component                                              Amount
Basic Salary                                                          13,750
HRA                                                                          6,875
Special Allowance                                                  4,125
Leave & Travel Allowance                                    2,750
ESI Employer Contribution                                          0
PF Employer Contribution                                           0
Total                                                                          27,500

Note: You will receive salary, and all other benefits forming part of your remuneration package subject to, and after, deduction of TDS, PF, ESI and professional taxes in accordance with applicable law.

Appraisal letter

Appraisal letter

Download Appraisal Letter in Word for Free

Download Appraisal Letter in PDF for Free

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RazorpayX Payroll is an HR and payroll software that provides customisable HR letters such as offer letter, appointment letter, relieving letter, and more.

Not just that, it also comes with in-built tools that quickly calculate the take-home salary and CTC for employees.

It helps manage employees across their lifecycle from onboarding to exit along with their full and final settlement. Sign up for RazorpayX Payroll for free. You can choose from 3 different plans that fit your specific business needs.

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1. Why are appraisals essential?

Appraisals are essential because they allow organisations to recognise and reward employees who contribute to their success. Such recognition motivates the employee to perform better, resulting in the organisation's overall growth.

2. How often should appraisals happen?

The frequency of appraisal depends on company policies and standards. It can happen at different periods, such as annually, half-yearly, or quarterly.


Alish is a writer at RazorpayX. Zoophilist. Coffee Addict. And now a FinTech enthusiast. When not writing you'll find her learning French, taking a long walk (or run) with her dog, or Netflixing.

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