An employee asks for a pay rise. They may have taken on more responsibilities, delivered strong results, or found that similar roles offer higher salaries. You want to recognise their contribution while keeping compensation decisions fair and affordable.
The challenge is deciding how to assess the request and explain your decision. An immediate promise can create expectations you cannot meet. A vague rejection can leave an employee unsure whether their work has been recognised or what they need to do next.
A clear review process helps you understand the reasons behind a pay rise request, assess the evidence, and respond with a concrete outcome. This guide explains how employers and HR teams can handle the conversation, including practical response examples and considerations for teams across Southeast Asia.
What is a Pay Rise Request?
A pay rise request is an employee’s request to increase their salary or hourly pay. It may come during an annual review, after a promotion, or when the employee believes their current compensation no longer reflects their role or contribution.
A request for a higher base salary differs from a request for a bonus. A base salary increase creates an ongoing change to regular pay. A bonus generally rewards a particular period or achievement, subject to its terms.
Before evaluating the request, clarify what the employee is asking for: a permanent salary increase, a role and salary review, or another change to their compensation package.
Why Do Employees Ask for a Pay Rise?
Understanding the reason helps you choose the right review. A request based on expanded responsibilities calls for a different assessment from one based on temporary exceptional performance.
1. Their Responsibilities Have Increased
An employee may now manage a team, own a larger budget, or lead projects that previously belonged to a more senior role. Compare their current responsibilities with their job description and level.
For example, a marketing executive who now manages regional campaigns and supervises two colleagues may need a role evaluation alongside a salary review. Establish whether the additional work is a temporary assignment or a lasting change.
2. Their Results Support a Salary Review
Employees may point to sustained improvements in revenue, customer retention, productivity, or service quality. Review these achievements against the expectations of their role and the circumstances in which they delivered them.
Look beyond one standout result. Consider quality, consistency, collaboration, and the employee’s individual contribution to shared outcomes.
3. Their Pay Appears Below the Market
An employee may have seen salary surveys, job advertisements, or an external offer suggesting that comparable roles pay more. Treat this information as a starting point for a review.
Check whether the comparison matches the location, responsibilities, experience level, and type of compensation. A salary advertised for a larger role or including commission may not be directly comparable with their current base pay.
4. Their Living Costs Have Increased
Rising living costs can make compensation discussions more urgent for employees. Acknowledge the concern and explain how your company considers cost of living within its pay policy.
If the issue affects much of your workforce, consider whether it belongs in a broader compensation review. An individual negotiation alone may not address the underlying concern.
5. They Are Concerned About Internal Fairness
Employees may ask for a rise because they believe colleagues doing comparable work receive more. Review the concern using appropriate HR records without sharing another employee’s private salary details.
Check whether differences reflect relevant factors such as role scope, experience, or sustained contribution. Do not assume that every existing pay difference is justified simply because it has been in place for years.
How to Handle a Pay Rise Request
1. Listen Before Giving an Answer
Give the employee time to explain their request in a private conversation. Ask what has changed and what adjustment they are seeking.
You can respond:
Thank you for raising this. I would like to understand how your responsibilities and contribution have changed, and the salary adjustment you are requesting. I will review that information with HR before giving you a decision.
Acknowledging the request does not commit you to approving it. It establishes that you will consider it seriously.
2. Clarify the Evidence and Requested Amount
Ask for a short summary of the employee’s reasons, relevant achievements, additional responsibilities, and requested salary. If they use market data, ask for the source and the roles being compared.
Keep the process proportionate. You should also review information already available to you, including performance records and changes to the employee’s role. Employees should not have to reconstruct evidence that their manager already holds.
If their requested increase is unclear, ask whether they have a target salary or would prefer you to review their position within the relevant salary range.
3. Identify the Type of Pay Review Needed
Use the reason for the request to identify the appropriate assessment.
| Reason for the request | What to review | Possible outcome |
| Sustained contribution beyond role expectations | Performance evidence and progression criteria | A performance based salary increase |
| Permanent increase in responsibility | Current duties and job level | A promotion or role adjustment with revised pay |
| Pay below relevant market levels | Comparable salary data and the employee’s salary range | A market adjustment |
| Unexplained difference between comparable employees | Internal pay records and relevant factors | An internal equity adjustment |
| Exceptional contribution to a temporary project | Project results and reward policy | A bonus, where appropriate |
These are practical review categories, not automatic entitlements. A request may involve more than one reason, such as a larger role combined with outdated market pay.
4. Check Salary Benchmarks and Internal Fairness
Compare the employee’s pay with roles that match their actual work. Useful factors include location, job level, industry, company size, specialist skills, and managerial responsibilities.
Compare equivalent components. Base salary, total cash compensation, and packages including equity represent different measures of pay. A clear compensation strategy helps you assess salary requests against consistent criteria, including market positioning, role value, and internal fairness.
Then review the employee’s position within your own salary structure. The CIPD’s guidance on pay structures and progression explains how pay structures can support clarity, fairness, and communication about salary progression.
For example, approving a substantial rise for one specialist should prompt a check of colleagues with comparable responsibilities and contribution. If you identify a wider issue, address it through the relevant compensation process rather than waiting for every affected employee to negotiate individually6
5. Assess the Full Cost and Approval Requirements
A base salary increase affects recurring employment costs. Work with finance or payroll to calculate the impact, including any employer contributions or salary linked payments that apply.
For illustration, increasing monthly base pay from SGD 4,000 to SGD 4,400 adds SGD 4,800 to annual base salary over a full 12 months. The total employer cost may be higher depending on applicable contributions and compensation terms. This is a calculation example, not a recommended increase.
Review the employee’s full compensation and benefits package to understand how a base salary increase affects the wider cost of employment.
6. Give a Specific Response Date
Tell the employee when they can expect a decision. Choose a date that allows you to complete the necessary review and obtain approval.
For example:
I will review your role scope, performance evidence, and salary range with HR and finance. I will update you by 23 October. If the approval process takes longer, I will explain what is still pending before that date.
Avoid leaving the employee to follow up repeatedly. If the review is delayed, provide an update even when the final answer is not yet available.
7. Explain and Document the Outcome
Arrange a conversation to communicate the decision and its reasons. Follow up in writing so the employee has a clear record.
For an approved increase, confirm the new salary, currency, effective date, and any related changes to role or compensation. Coordinate with payroll and follow the documentation requirements applicable to the employee’s location.
For a declined or deferred request, explain the relevant criteria and any next steps. Make clear whether a later meeting is a review opportunity or an already approved future increase.
Pay Rise Request Response Examples
1. When You Approve the Request
Thank you for discussing your salary with me. Following our review of your expanded responsibilities, performance, and salary range, we have approved an increase in your monthly base salary from SGD 4,000 to SGD 4,400, effective 1 November. HR will confirm the details in writing and coordinate the payroll update.
Use this wording only after obtaining the required approval. Explain why the change was approved so the employee understands how the decision relates to their role and contribution.
2. When You Approve a Smaller Increase
We reviewed your request for SGD 4,600 against your responsibilities, contribution, and the salary range for your role. We have approved a monthly base salary of SGD 4,400, effective 1 November. I would also like to explain the criteria for further progression and agree when we will review them again.
Give the reason for the approved amount. Avoid presenting a smaller increase as a negotiating tactic if it is the outcome supported by your review.
4. When the Request is Justified but Budget is Unavailable
Your additional responsibilities provide a strong basis for reviewing your pay. We cannot approve an increase within the current budget. We will revisit the request on 15 January during budget planning. That meeting will be a review, and a salary increase has not yet been approved.
If you can offer an alternative, explain its terms separately. Be candid about what it can address. Additional flexibility or a development opportunity may be useful, but it does not resolve a salary gap.
5. When You Decline the Request Based on Current Evidence
We reviewed your request against the responsibilities and progression criteria for your role. We are not approving an increase at this stage because the evidence does not yet show the sustained ownership required for the next salary level. Let us agree on the specific responsibilities, support, and outcomes we will review at our next meeting.
Describe the missing evidence in practical terms. For example, agree that the employee will independently manage a defined client portfolio and meet established service standards over a specified period. Ensure they have the resources and authority needed to demonstrate that contribution.
Common Mistakes to Avoid
1. Making a Promise Before Approval
Statements such as “I am sure we can give you 10%” can create expectations before you have checked the budget or approval process. Explain what you will assess and when you will respond.
2. Rewarding Only Employees Who Negotiate
Employees differ in how comfortable they feel raising salary concerns. Review pay proactively so that compensation decisions do not depend only on who asks most confidently.
3. Confusing a Bonus With a Permanent Pay Adjustment
A bonus can recognise a particular achievement. It may not address a permanent increase in responsibilities or an ongoing market pay gap. Explain what the payment recognises and whether base salary will also be reviewed.
4. Declining Without Explaining the Criteria
“You are not ready” gives an employee little direction. Explain which responsibilities, skills, or outcomes matter, how they will be assessed, and what support is available.
5. Using an External Offer as the Only Reason to Review Pay
An external offer can prompt a review, but consider the same evidence you would use for other employees. Assess role value, market positioning, internal fairness, and affordability before making a counteroffer.
6. Missing the Payroll Follow Through
After approval, confirm that the correct salary and effective date reach payroll before the relevant processing deadline. If backdating has been approved, document the period and amount clearly.
Handling Pay Rise Requests Across Southeast Asia
For regional teams, use consistent decision principles while checking the local context. A salary benchmark for Singapore will not automatically provide a suitable reference for the same job title in Indonesia, Vietnam, Malaysia, or the Philippines.
Compare local role scope and pay data, then confirm how the proposed increase affects employment costs and compensation arrangements in that location. Specify whether an amount is gross or net and which currency applies.
Keep base salary reviews distinct from bonuses and other annual payments. For example, Singapore’s Ministry of Manpower states that Annual Wage Supplement is not compulsory and depends on the employment contract or collective agreement. That Singapore rule should not be assumed to apply to annual payments elsewhere.
If an employee is employed through an Employer of Record, coordinate with the provider on the required approvals, documentation, and payroll timing before confirming an effective date.
For a broader view of how salary, benefits, and other rewards fit together, explore this guide to compensation and benefits.
Turn Pay Conversations Into Clear Next Steps
A well handled pay rise request ends with an employee understanding the decision and what happens next. Review the reasons carefully, apply consistent criteria, and communicate an approved change or a concrete review plan.
As your team grows across Southeast Asia, salary changes also need accurate documentation and payroll coordination. Explore Glints TalentHub for support with hiring and managing your regional team.
