We are a team of 6 developers:

• a lead (expecting a baby) • two (including me) experienced (more than 3 years) • 3 new joiners

We release process once in two weeks. We have more than 5 customers which company can not afford to lose.

The other experienced developer has an offer from another company with a very good salary (almost twice as much as their current one) and I can also get the same new job as my peer did.

In this situation can I negotiate a salary increment with my current employer without an offer letter, considering the lead will be on Maternity Leave after a month?

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    You should argue raises on your own merits and accomplishments, not because you can get more elsewhere. Interviewing with no intention of accepting a job is dishonest and disrespectful towards genuine candidates. – Lilienthal Nov 7 '15 at 13:26

The most effective piece of information you have is your coworker's receiving an offer with a significantly higher salary. It's the next best thing to having your own offer letter.

Yes, now is a great time to discuss your compensation. With clear evidence that your talents have a higher value in the marketplace, they will need to do something to make you happy to stay there. It is unlikely, though, that they will match the other colleague's offer. It is possible that they simply do not have the finiancial capacity to do so. But perhaps they can offer you a few more intangible benefits, such as more vacation time, flexibility in your working hours, training opportunities, free snacks, etc.

It is very rare that any company will fully double your pay to keep you. If you are determined to match your coworker, you will likely have to find a new job.

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You appear to be holding a lot of ammunition, so yes, I definitely think you could negotiate a raise successfully without an offer letter. In fact if you could go and get double your salary elsewhere, you probably should have done this a while ago.

Your employer with one key staff member leaving and another going on leave is probably a bit worried about an exodus already (or should be) so the timing is right.

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