A salary certificate is an official document that is issued to an employee which contains the particulars of monthly earnings, salary breakups, dedications, and the summary of the employee’s net pay. It is a reflection of what an employee earns from working for an organization or a company. This certificate is a requirement especially for those employees who want to take a loan from the banks.
It is used in verification of the employee income so that the bank can gauge the ability of the employee to repay the loan requested. Therefore, the employees can collect their salary certificate from their employees when they need it.
- Identify the purpose. When an employee requests a salary certificate the employers should first start by establishing if the request presented by the employee is legal and what the certificate has been purposed to do. This is the primary way of getting things on the right path before the certificate is created.
- Formatting. The structure and format of a salary certificate are customizable depending on the purposes of the salary certificate. The employee might want to borrow a loan, open a bank account, or applying for a lease. Therefore, the structure should be in accordance with the purpose so long as it maintains the relevant features of a salary certificate.
- Use headers. Headers are very essential when it comes to designing a salary certificate because it outlines every important information. The headers are used to illustrate the employee’s details that should capture payment information.
- To have a complete layout of a salary certificate you can use tables to break down other particulars so that you have a comprehensive salary certificate.
Sample Salary Certificate
GRIGS COMPANY LTD firstname.lastname@example.org
TO WHOM IT MAY CONCERN
This is to certify that Mrs. Jean Brown, Employee ID 4328-0987 is working with the Griggs company ltd. She has been working in our company since 2000 and she has proven to be reliable and self-driven employee who has been resourceful and loyal to our company.
Therefore, here is the breakdown of her monthly salary.
Gross Salary (AED) Deductions (AED)
Basic pay -$14000 deduction 1-$657
DA $800 deduction 2-$165
HRA $5500 deduction 3-$300
Medical allowance $ 2250 deduction 4- $269
Total 1 $22550 Total 2 $1391
Net salary’ $21159
Net salary AED (Twenty one thousand, one hundred and fifty nine dollars)
This certificate is issued to Mrs. Jean brown upon her request
Salary Certificate Examples and Templates
Annual Employee Salary Certificate
Blank Salary Certificate Format
Company Salary Certificate Format
Employee Salary Certificate Template
Final Salary Certificate
Gross Salary Certificate
Monthly Salary and Service Certificate
Monthly Standard Salary Certificate
Permanent Employee Salary Certificate
Professional Salary Certificate Template
Salary Certificate Example
Sample Salary Certificate
Status Enquiry Salary Certificate
Blank Salary Certificate
Usage of Salary Certificate
- Loan application. Banks are very conscious when giving out loans. They require the creditors to request a salary certificate so that they can analyze the potential of the employee to repay the loan. If they feel that loan request is not reasonable, they might lower the loan limit based on the information extracted from the salary certificate.
- Opening new bank accounts. A salary certificate is useful when it comes to the opening of a bank account. Most banks require it b fire the applicant is legible to open a new bank account.
- Used in leasing. Most landlords had raised fraud issues from their tenants when it comes to leasing. Therefore, as an intervention measure, they will request a salary certificate to prevent deceit from such erroneous tenants.
Tips for Writing a Perfect Salary Certificate
- Enter the correct details. Ensure that the salary certificate bears the correct information because the legitimacy of the certificate depends on it. Let the salary details be logical enough so that the employee can prosper in his endeavors when accessed by other financial institutions.
- Proofread. Proofreading the salary certificate is very essential to ensure there is no misappropriate information or any omission before you produce the final copy.
- Avoid irrelevant information. A salary certificate is a legal document that should not contain any unverified information. Don’t try to create an impressive salary outlook just present everything as it is to avoid legal consequences that might arise from false claims.
Questions & Answers (FAQs)
A salary slip is a document which contains employee earning for a particular month whereas the salary certificate is issued by the employee to certify the salary that the employee is earning in the company within the period of employment.
You will need to write a request letter addressed to your employee following your request to have a salary certificate. Ensure you give precise information on how you intend to use the salary certificate.
A salary certificate is a legal document that is among the most required document in financial institutions. Therefore, you will require it when processing a loan, leasing, and other relevant application.