Cost of Living Raise Request Letter — Free Template
When prices rise faster than pay, your real income shrinks even if your salary stays the same. A cost of living raise request asks your employer to adjust your pay to keep up. It works best when you pair the cost-of-living argument with evidence of your continued value, rather than relying on rising prices alone.
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October 15, 2026
[Your manager's name]
[Company name]
Re: Request for a salary increase
Dear [Your manager's name],
I have worked at [Company name] as [Your job title] for [How long you've been in the role], and I value the opportunity to contribute to the team. I am writing to request a salary increase to [The salary you're asking for], based on the rising cost of living.
[Your key achievements and responsibilities]
I am committed to continuing to grow in my role and to supporting the team's goals. I would appreciate the chance to meet and discuss this request at a time that works for you, and I am happy to provide any additional information that would be helpful.
Thank you for your time and consideration.
Sincerely,
[Your full name]
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Use reliable numbers
If you mention inflation, use a reliable source, such as the Consumer Price Index published by the US Bureau of Labor Statistics, and compare the change since your last raise. Don't guess or round up; your manager may check.
Calculate what it would take for your pay to keep pace and make that your request. A specific figure linked to a clear calculation is easier to approve than a general request for more money.
Pair it with your value
Many employers don't see rising prices on their own as a reason to raise an individual's pay, especially if they already give an annual adjustment. Strengthen your request by showing that your performance has stayed strong or improved, so the raise is about keeping a valued employee, not just covering costs.
Avoid making the letter about your personal budget. Your rent, childcare or loans may be real pressures, but the case to your employer should rest on fair pay for your work and the market.
If the answer is no
Ask whether the company plans a general cost-of-living adjustment for all staff, and when. If not, ask what results would support a merit increase at your next review.
Consider other ways to offset rising costs, such as remote work days to reduce commuting, a transit or wellness benefit, or extra paid time off.
What to do, step by step
Do your research
Look up pay for similar roles in your area using salary surveys, job postings and professional associations. Know your company's review cycle and how raises are usually decided.
Gather your evidence
List your results from the past year or since your last raise: numbers, projects, new responsibilities and positive feedback. Specific evidence is what makes a raise request persuasive.
Fill in your letter
Answer the questions above. Ask for a specific figure, explain the main reason, and back it up with your achievements and any market data.
Pick the right moment
Good times to ask are before budgets are set, during a review, or after a big win. Avoid asking during a crisis or right after bad company news.
Send it and ask for a meeting
Email the letter or bring it to a one-on-one, and ask for time to discuss it. Be ready to talk through your points calmly and to listen to the response.
What if your manager says no to your raise request?
Stay calm and ask what it would take. Ask which specific results or skills would justify the raise, and when you could revisit the conversation. Write down what you agree and send a short email summarizing it.
If money is tight, ask about other options: a one-time bonus, extra paid time off, a better title, flexible hours, training paid by the company, or a review date in three or six months rather than a full year.
If you're repeatedly told no without a clear path forward, and your research shows you're paid well below the market, it may be worth looking at other opportunities. You don't need to threaten to leave; simply knowing your options can help you decide what's right for you.
Example cost of living raise request letter
A filled-in sample with made-up details, so you can see the finished result.
Jasmine Carter
October 5, 2026
Mr. Reyes
Bluewater Analytics
Re: Request for a salary increase
Dear Mr. Reyes,
I have worked at Bluewater Analytics as Senior Account Manager for three years, and I value the opportunity to contribute to the team. I am writing to request a salary increase to $81,000 per year, an increase of 4 percent, based on the rising cost of living.
My salary has not changed since January 2025, while costs for housing, transportation and everyday goods have risen noticeably. During that time, I have continued to deliver strong results, growing my portfolio to 27 accounts and keeping a 96 percent renewal rate.
Published government inflation figures show that consumer prices have risen since my last salary adjustment, and I would welcome an adjustment that reflects that change.
I am committed to continuing to grow in my role and to supporting the team's goals. I would appreciate the chance to meet and discuss this request at a time that works for you, and I am happy to provide any additional information that would be helpful.
Thank you for your time and consideration.
Sincerely,
Jasmine Carter
Frequently asked questions
What is a cost of living raise?
It's a pay increase meant to keep wages in line with rising prices, so your income buys the same amount as before. Some employers give an annual cost-of-living adjustment to all staff; others handle it through individual raises.
Are employers required to give cost of living raises?
Generally, no, for private employers. Some union contracts, government jobs and employment agreements include cost-of-living adjustments, so check yours. Otherwise, it's up to your employer, which is why a clear, well-supported request helps.
How do I calculate a cost of living raise?
Compare the change in a published price index, such as the Consumer Price Index, from your last raise to now, and apply that percentage to your salary. That gives you a reasonable, evidence-based figure to request.
How much of a raise should I ask for?
Base it on research rather than a fixed rule. Look at market pay for your role and location, your company's usual raise range and the value you've added. Ask for a specific figure near the top of what you can justify, leaving some room to negotiate.
Should I ask for a raise in writing or in person?
Both work best together. A letter or email lays out your case clearly and gives your manager something to share with decision-makers, while a meeting lets you discuss it and answer questions. Many people send the letter first and then meet.
FairLetter is not a law firm and does not provide legal advice. Letters are templates you customize and send yourself.