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Sample Compensation Letter

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    Writing a compensation letter to employee does not necessary means the company is going to terminate the employee work and service by providing compensation.

    Compensation letter can be written to inform the employee on the fixed allowance such as transport benefit in exchange of their work travel.

    Remember to do a proofread and eliminate grammar and spelling errors in your compensation letter.

    Besides, you just need to get right to the point and avoid unnecessary words in your compensation letter.

    As below is the template and sample for writing good compensation letter.

    Sample Employee Compensation Letter

    (Print Employee Compensation Letter On Corporate Letterhead)


    (Employee Name)
    (Employee Street Address)
    (City, State, Zip Code)

    Dear (Employee Name),

    Transport Allowance Compensation

    We wish to inform you that with the effect from (date), you will be entitled to Transport Allowance of (amount) per month.

    Please note that this allowance is always subject to your being entitled to it by virtue of your working location in (location name).

    In addition, allowances offered to an individual shall be at the absolute discretion of the Company and shall also be subject to change or withdrawal without consent.

    Other terms and conditions of employment remain unchanged. Please let us know should you have any queries.


    (Position Title)


    I accept your offer of the above provisions on the above terms and conditions

    (Employee Name)
    » Sample Cancellation Letter