Yes. Thank your boss for everything that he gives you! If you have two people: the one who thanks the boss and the one who doesn't...which one do you think makes the better impact?
If the boss was instrumental in getting the raise in salary for you a note (hand written please, e-mail just doesn't cut it here) of appreciation would be in order. If the increment was a standard...
To show your appreciation you could give your boss a card thanking him/her for the award and describe, in your own words, what receiving the award means to you. Or you could give your boss a small...