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[Full Guide] What is Salary Certificate and How to Use it?

Check out our Salary Certificate template!

Introduction.

The salary certificate is an official document issued and verified by an authorized person of an organization. The document will be signed with the organization’s stamp and signature to serve as verification. To put it in layman’s terms, the salary certificate is a verification document that the employer (the company that hires you) provides the employee so that they can declare their employment. The document is quite important because it provides information on the employee’s salary, employment period, and also additional details such as the company’s name and address.

If you want to get a salary certificate from your company, you should always ask the Human Resources department. Sending out these documents falls into their responsibilities list and they are required to provide the salary certificate to all employees that require it.

What can the salary certificate be used for?

The question that most people have about salary certificate is what can this document be used for? Well, the document is requested for 4 main purposes: bank transactions, applying for loans, applying for a credit card, or paying taxes.

What can you find inside the salary certificate?

Here is a list of all the elements that are featured on the document:

  • Travel allowance;
  • Provident fund deduction;
  • Date of joining;
  • Authority signature;
  • Address;
  • Basic salary;
  • Gross salary;
  • Total allowances;
  • Employee code (this is optional);
  • Name of the employee;
  • Status (temporary or permanent);
  • Department;
  • Designation;
  • Medical Allowance;
  • Special Allowance;
  • DA dearness allowance;
  • HRA house rent allowance;
  • Provident fund deduction.

Sample Salary Certificate Template

Below you can find a sample salary certificate template that you can edit and modify for your company:

SALARY CERTIFICATE

This is to certify that Mr./Mrs. – – – — – – – — – – – — – – – — – – – — – – – — – – – — – – – is working with us since “month dd, yyyy” and presently designated as – – — – — – – – — – – – — – – – — – – – — – – – — – – – — – — – –, his/her present residential address as per our records is – – – – – — – – – — – – – — – – – – — – – – — – – – — – – – — – – – — – – – — – – – — – – – — – – – — – – – — – – – — – – – — – – – — – – — and his/her salary emoluments for period of January 01, 2011 to March 31, 2011 are as mentioned as below:

GROSS EMOLUMENTS

1. Basic Salary …………………..: xxxx.xx

2. HRA ………………………….: xxxx.xx

3. Allowance 1 …………………..: xxxx.xx

4. Allowance 2 …………………..: xxxx.xx

5. Special Allowance ………………: xxxx.xx

6. Conveyance …………………….: xxxx.xx

———————————

Gross Salary……………………………: xxxxx.xx

DEDUCTIONS

1. PF ……………………………: xxxx.xx

2. Loan 1 ………………………..: xxxx.xx

3. Loan 2 ………………………..: xxxx.xx

4. Others ………………………..: xxxx.xx

—————- —————

Total Deductions ……………………..: xxxxx.xx

Net pay (Gross salary – Deductions) ……………………….: xxxxx.xx
In addition to above Mr. / Mrs. is entitled to a bonus of  $———– and LTA of $ ————. We hereby declare that we have deducted income tax of $. ————- from Mr. / Mrs. ———————- ——————— emoluments and same has been deposited in ———————— Bank branch.
This salary certificate is being issued to him on his ———————- —————– request.

For company name

Authorized Signatory

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