How to write a compensation letter?


Quick Answer

Write a compensation letter by addressing the concerned firm and explaining the reasons for appropriate compensation. The letter should also contain the terms of the compensation and when the claim takes effect.

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Full Answer

  1. Write the date and addresses

    Write your address on the top of the paper. Leave a single space, then write the current date. Leave another single space, and write the recipient's address.

  2. Write a salutation

    Write a formal salutation on the letter. "Dear Sir/Madam" format is appropriate. You may address the recipient by his or her name if you know it.

  3. Write an introduction

    Introduce yourself, and give a brief reason for asking for compensation. If there is an authority that approves such a compensation, include his name in this section.

  4. Give detailed information regarding your demand

    Give details and amounts for which you seek to be compensated. Be clear and concise. Use a bullet point for individual aspects of the compensation. In your explanation, include calculations of the amounts you seek.

  5. State when the compensation goes into effect.

    Insert the specific date when the compensation takes effect.

  6. Write conditions for the demand

    Insert any conditions and caveats of the compensation. Be clear and straight to the point.

  7. Sign off the letter

    "Yours sincerely" is an appropriate format for the closing. Write your signature, and print your name below it.

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