Salary Certificates

A salary certificate is a formal document which is issued by the employer of a person. This certificate serves as a proof of total income of the person. Employees who are in need to get a loan are required to have a salary certificate.

The basic purpose of salary certificate is to verify that information of the person that he has provided to any person or institute about his monthly income, financial status and a lot more. Usually, the salary certificate is used to state that the person receiving the salary is a trustworthy person and capable to pay back the money on time.

Salary certificate for bank accounts:

Many banks have a policy of asking for a salary certificate to open an account for their customers. The source of income is important to be known by the bank before they allow any customer to open an account and deposit their money in the bank account.

As a matter of fact, the bank is answerable to the government of the state for keeping money in the bank which has an undefined source. The salary certificate of the customer validates that the person is earning money specified on the salary certificate and he will get the salary which will be deposited in the bank

Salary certificate for a bank loan or lease purpose:

These days, people are submitting the request to bank for issuance of loan for various types of financial needs. A bank issues the loan to the applicant when the applicant is able to prove his source of income.


If the applicant claims that is doing a job in the company, the bank will ask him to submit the salary certificate to see the capability of the applicant to pay off the loan. Similarly, when the jobholder applies for the loan or lease purpose, he is asked to provide the salary certificate.

How to create a salary certificate?

Creating a salary certificate can be tricky and simple at the same time. The exact format of the certificate should be known in order to write a professional looking salary certificate. The salary certificate should be made on the letterhead of the company. Write the name of the person who you are issuing the salary certificate.

The total salary of the person should be mentioned in the certificate. The information about the salary should be completely described in this certificate. The certificate should be signed by the head of the organization issuing the salary certificate.

Salary certificate

Salary certificate as MS word document:

A salary certificate is usually prepared in MS word document where it is easy to create and format. The MS Word document allows the user to add the logo of the company issuing the salary certificate. It also enables the user to write and edit all the details of the salary certificate.

MS word has also many such features that make it easier for the user to format the document where a structure is required to be maintained. Since there are many features available in MS word for formatting salary certificate, it is considered as a most appropriate document to prepare a salary certificate.

Salary certificate sample
Salary certificate sample
Salary certificate sample
Salary certificate sample

Why need a salary certificate?

Every person who is doing a job is needed to have a salary certificate for many reasons. Whenever a person is required to verify his/her income, he will have to provide salary certificate. You will be asked to submit the salary certificate when you want to get the loan and want the other party to know your total income and source in order to prove their position to pay off the loan.

Many students who are also doing a job with studies need salary certificate in order to apply for a financial grant. Some people also use a salary certificate to verify that they are legitimate people and are working in an organization.

Salary certificate
Salary certificate

How to make a salary certificate request?

To get the salary certificate, you are required to make a request to the concerned person of the organization. The salary certificate can be for general purpose or specific. You can make the request for salary certificate by writing a letter to the organization or through email.

No matter you use email or telephone, it is always necessary to request salary certificate in a positive tone. You can tell the reason if the organization is not willing to issue the general purpose salary certificate. However, it is not necessary if the company is not asking you about the reason for putting this request forward.

Structure and layout of a salary certificate

The salary certificate should include the letterhead of the company at the top. After this, the contact details of the company should be mentioned. The title of the certificate should be given after mentioning the contact details of the company.

There should be a space for the signatures of the employer who will authenticate this certificate. The body of the certificate is the most important part of the salary certificate. It should include all those details which are ended by the targeted user. The format of the certificate should be like other formal certificates.

Mention details of salary on the certificate

The salary certificate is not a document that tells the total income of the person only. Rather, it gives every single detail about the salary such as basic salary of the person, number of allowances, nature, and type of allowances, any type of special allowances and gross salary of the individual.

The salary certificate should also include the details about the deductions. If the deduction is due to a loan is taken by the employee, the details of the loan should be provided. Gross deductions should also be mentioned in the certificate.

Deductions due to tax should also be specified.

What is a salary verification letter?

A salary verification letter is also issued by the employer of the organization. The purpose of writing the verification letter is to verify the employment and salary details of the employee. This letter is needed when you want to apply for a new job or going to rent a new house. The salary verification letter is requested by the employee.

In some cases, the employer can also contact the current employer of the employee to verify the salary details provided. The details given in the resume can be verified through the salary verification letter.

What is different between a salary verification letter and salary certificate?

There is a huge difference between salary certificate and salary verification letter. Unlike salary certificate, the verification letter does not provide comprehensive details about the salary of the employee since its purpose is to verify the salary only.

The salary verification letter also includes the time of the employee in the company. Salary verification letter has nothing to do with the detailed salary information. It does not give information about taxes, deductions, loan payments etc. It just verifies the gross salary of the employee.

Professional salary certificate contents:

The content of the salary certificate matters a lot. It is important to add the best details to make the salary certificate more professional looking. If you want to make a professional looking salary certificate, you can get the information added to them. The main details that are added are

  1. Name of the employee
  2. Name of the company
  3. Signatures of the employer
  4. Gross salary of the employee
  5. The date on which the employee joined the company
  6. Other relevant details of salary such as deductions in the form of tax and some other money compensations

Salary certificate