[Date]
Dear [Employee name],
This notice serves to advise you of a merit increase in [wage/salary] in the amount of [dollar amount or percentage of your base pay]. The effective date of this increase is [date] and the increase in pay will appear in in your paycheck dated [date].
We are pleased to award this increase based on your performance over the last review period and believe it will serve as an incentive for you to continue to strive to meet our business goals and objectives in the future.
Warm regards,
[Name]
[Job title]
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