Salary Certificate Sample

Salary Certificate Sample

Salary Certificate Sample
Ashma shresthaFri Jun 10 2022

A salary certificate letter is a document that contains salary information of an employee. It serves as the employer's evidence of employment. The finance team of a company usually provides the salary slip or the salary certificate to the employee after each month's salary is paid.

To put it another way, a Salary Certificate is an official document that must include an employee's monthly total earnings, monthly total deductions, break-ups, and a summary of net salary received for the month. It should be able to convey the employee's financial entitlement, as well as his or her identification, job title, and remaining retirement years.

It is also regarded as the official document representing the employees' association with the company with all relevant information about the wage components such as Basic Pay, Allowance, and other allowances and associated benefits.

The benefit of getting a salary certificate letter is that it can be used as evidence of your employment at the specific company. Your remuneration can also be increased further based on the present salary structure.

Difference between Salary Slip & Salary Certificate

Salary slips hold the information about the amount of pay with tax and insurance deducted. Whereas salary certificate letter is a letter from an employer declaring that an employee has worked for the company for a certain amount of time essentially with all of the information regarding a person's pay, including the present salary, as well as any deductions like tax and provident fund, social security, etc.

Many of the people might consider both the terms to be the same and denote the same meaning. To clear up the confusion let's point out some of the major differences between Salary Slip and Salary Certificate:

  • You will find a thorough description of the monthly salary in the salary slip whereas you will get an entire salary information in a salary certificate.
  • A pay slip shows your financial status, which might help you receive loans or other services. Whereas, a certificate shows the proof of employment by providing financial total earning information about the employee in the company he/she has been working. 
  • Salary slips are issued for a certain month, such as June 2022, whereas salary certificates are issued for a specific time duration, such as a whole financial year or the required period. It might potentially include your entire tenure at the organisation.
  • The bottom line is salary slips are required for employees to be able to obtain loans or long-term benefits. A salary certificate, on the other hand, is necessary for an employee to manage his or her earnings. This salary certificate also aids in the declaration of an employee's employment status.

Basic Components of Salary Certificate

The contents of a salary certificate may differ from one organisation to the next, so the list below is merely informative and not entire.

The following are the basic components in the salary certificate:

  • Name of the employee
  • Employee ID
  • Designation
  • Department
  • Salary Breakdown
  • Basic Salary
  • List of Allowances (House rent allowance, Dearness allowance)
  • List of Deductions (Employee Provident Fund, Contribution, Insurance, Tax, Loans etc)
  • Employee Status
  • Date of joining the organisation
  • Address of the Employee
  • Authorised Signature

Uses of Salary Certificate

Salary certificate is an important document that verifies the employee works with a particular organisation. It specifies the total earnings of that employee in the associated organisation.

Salary Certificate is requested for multiple purposes. Some of the uses of a Salary certificate are mentioned below:

  • Bank Transaction
  • Tax Payment
  • Loan request
  • Credit request

Tips for writing Salary Certificate

An organisation is advised to break down the salary certificate in the following manner:

  • Under the salary certificate, the amount of salary the employee is entitled to shall be clearly written.
  • Gross salary should be calculated based on the sum total of all calculative figures.
  • Deduction shall also be shown in the salary certificate.
  • Under deduction head, income taxes, TDS, loans, advance repayable, and provident fund contribution are required to be deducted.
  • At the end of the section, show the total deducted amount.
  • Finally, net salary should be calculated and mentioned in the Salary Certificate which is gross salary minus total deductions.

Format 1: Salary Certificate

[Company Letterhead]                                                                                        [Email ID]

 Contact Number:

Salary Certificate Letter

———————————–

Signature of the employee

This is to certify that Mr./Ms. [Employee Name]_ _ _ _ _ _ _ _ Employee ID [Number] _ _ _ _ _ _, [Identification Number] is working with [Company Name] _ _ _ _ _ _ since [Date, Month & Year of Joining] _ _ _ _ . She/he is a permanent employee of the company and is serving as [Designation] in the [Department Name]. Currently, she/he is drawing a monthly salary as per the following breakup:

We are issuing this letter on the request of our employee and do not hold any liability on behalf of this letter or part of this letter on our company.

Gross Salary (Rs)

Deduction (Rs)

Basic Pay

EPF

 

DA

Professional Tax

 

HRA

TDS

 

Medical Allowance

Deductions

 

Other/Misc.

Total Deductions (2)

 

Gross Salary

   

Net Salary

   

Net Salary (in words)

This certificate is issued to Mr. /Ms. [Employee Name] on his/her specific request.

——————————–

Authorised Person’s Signature [with date]

[Company’s Full Address

[Phone Number]

Format 2: Salary Certificate 

[ Date]

SALARY CERTIFICATE

To Whom It May Concern

This certificate is issued for Mr./ Ms. [ Employee's Name] , a resident of [ Full Address] who has been working with [ Company Name] since [ Mention Date/Duration]. He/ She is working in the capacity of [ your designation] and has been drawing the monthly salary of NPR. [ Amount].

Mr. / Ms. ( Employee’s Surname] is assigned to [ mention role and responsibilities] . He/ She has shown his/her best professional commitment toward his/her assigned work and has been sincere towards organisation.

Besides regular salary he/she is entitled to office allowances and performance based incentives.

This certificate is issued upon request from Mr./ Ms. [ Employee's Name].

[ Signature of Authorised Person and Company Seal] [ Name of Authorised Person] [ Company Name] [ To be printed in the company’s official letterhead]

 

Salary Certificate Letter Sample

To Mrs ....

Date: < >

Time: 12:30 P.M

This is to certify that Mrs ... has been working as the Chief Content Editor at ... for the last 3 years from 5th January 2019. She has been serving as a permanent employee of the company and drawing a salary of Rs. 9 lakhs per annum. She has been a hard-working, sincere and dedicated employee since then.

This letter is being provided at the request of the employee, and we hold no accountability on behalf of the letter.

Gross Salary (Rs)

Deduction (Rs)

Basic Pay

 

EPF

 

DA

 

Professional Tax

 

HRA

 

TDS

 

Medical Allowance

 

Deductions

 

Other/Misc.

 

Total Deductions (2)

 

Gross Salary

     

Net Salary

     

Net Salary (in words)

Jyotsna Shrestha

HR Manager

Tech Today

{Location, Contact number}

Authorised Signature

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