Salary increment letter generator for UAE employers
Enter the current and revised monthly pay and the date the increase takes effect. The letter works out the increase in dirhams and per cent and keeps basic salary separate from allowances, because gratuity and overtime are calculated on basic salary.
Your details are sent to our server only to build the preview and the file, then discarded. Nothing is saved or logged.
Why basic salary is shown separately
End-of-service gratuity is calculated on the last basic salary (Article 51) and overtime on the basic salary (Article 19). An increase paid only as allowances does not raise either. If the basic salary goes down while the total goes up, the tool warns you, because that reduces the employee's gratuity and overtime. If the change alters the wage in the employment contract, check whether the contract registered with MOHRE needs updating.
This tool produces templates for general guidance. It is not legal advice. Check the final wording with your HR team, and for contracts with MOHRE (600 590 000) or a UAE employment lawyer.
Frequently asked questions
Is an annual salary increment required by UAE law?
We found no rule in Federal Decree-Law No. 33 of 2021 or its Executive Regulation that requires annual increments. Any increment depends on the employment contract or the company's policy.
What should a salary increment letter include?
The employee's name and job title, the date the increase takes effect, the current and revised salary split into basic salary and allowances, the amount of the increase and, if you choose, the reason and a line saying the other terms stay the same.
How is the increment percentage calculated?
The increase in total monthly salary divided by the current total, times 100. For the example on this page, AED 1,000 on AED 12,000 is 8.33%.
Does an increase in allowances change gratuity?
No. Gratuity is calculated on the last basic salary (Article 51), so only an increase in basic salary raises it. Use our gratuity calculator to compare.
Do you store what I type?
No. Your details are sent to our server only to build the preview and the DOCX or PDF file, and the letter is returned straight to your browser. Nothing is saved, logged or used for anything else, and you do not need an account.
Sources
Last checked: October 2026
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