Salary Certificate: Format, Sample, Template and Recommendations

Salary Certificate: Format, Sample, Template and Recommendations

Salary Certificate is a document issued by a company to its employees to confirm their employment and their monthly earnings. It also serves as a supporting document for transactions with financial institutions or government agencies, such as applying for loans, requesting a visa, etc.

What is a Salary Certificate?

 

A Salary Certificate is an important document for employees to verify the compensation they receive each month. This blog will discuss the benefits of the Salary Certificate and the key components of issuing one when business owners or HR departments need to provide it to employees.

 

Benefits of a Salary Certificate

 

A Salary Certificate is used to confirm the monthly salary an employee receives based on their base salary. The amount specified is the gross salary before taxes or any deductions.

The employees can use the Salary Certificate for various transactions as desired such as applying for a visa, requesting a loan from a financial institution, including loan for a house, loan for a car, or applying for a credit card. This document serves as a key factor for financial institutions to assess the employee's creditworthiness and determine loan amounts based on their ability to repay the debt.

 

Salary Certificate Format

 

When issuing a salary certificate upon an employee's request, ensure it includes the following details:

 

Key Components of a Salary Certificate

When a business needs to issue a Salary Certificate to an employee, it should include the following essential components:

 

  1. A statement indicating the document is a “Salary Certificate.”
  2. The intended use of the certificate (e.g., for government use or loan applications).
  3. Employee Information: Mention the employee's full name, designation/job title, employee ID, residential address, and the employee’s employment start date, up until the date of issuance of the certificate.
  4. Employer Information: Provide your company’s official name, address, and contact information.
  5. Salary Information: Clearly outline the salary components, including basic pay, house rent allowance, conveyance allowance, bonuses, and any deductions.
  6. Net Pay: Specify the total amount the employee is projected to receive for the financial year.
  7. Date and Signature: Include the date of issuance along with the signature of the payroll administrator or HR manager.
  8. Declaration: Add a statement confirming the accuracy and authenticity of the information provided in the certificate.

 

Salary Certificate Sample

 

Here's an example of how the salary certificate should look:

 

Salary Certificate Sample

 

Salary Certificate Template – Free Download!

You can download the sample salary certificate above from this link.

 

Common Questions on How a Salary Certificate is Created and Used

 

How Long is a Salary Certificate Valid?

 

In general, once a business owner issues a Salary Certificate to an employee, its validity depends on the date it was issued and varies based on the purpose of use, as follows:

  • Salary Certificate for loan or card applications with financial institutions is typically valid for up to 1 month or 30 days.
  • Salary Certificate for government agencies is valid for up to 3 months or 90 days.
  • Salary Certificate for visa applications is usually valid for up to 1 month or 30 days. Sometimes, it may need to be in English.

 

Employees should double-check with the financial institution or agency requesting the Salary Certificate to ensure it is submitted within the correct time frame.

 

Can Employees Issue Their Own Salary Certificate?

 

The answer is “no”. Employees cannot issue their own Salary Certificates. Only the business owner, HR department, or an authorized individual (e.g., a branch manager) can issue it. The certificate must bear the signature of the authorized person. Otherwise, it may be considered fraudulent or as falsifying documents, which could result in issues during financial transactions such as loan applications, affecting future creditworthiness.

 

Can Daily Employees Obtain a Salary Certificate?

 

In the case of daily employees requesting a Salary Certificate, the company can issue a Daily Income Certificate instead of a Salary Certificate. The Daily Income Certificate must specify that the employee is a daily-wage worker. The approval of loans will depend on the bank’s criteria for such income documentation.

 

Recommended Solutions: Payroll + Accounting Solutions

 

Apart from issuing salary certificates, there’s more for payroll. Maximize efficiency for your business by managing your payroll and accounting from the same system with FlowAccount Payroll.

Here’s the key features we offer:

  • Simple Setup: Adding your payroll for any schedule, daily or monthly, and store it online to quickly sync with payments.
  • Quick calculations & minimal mistakes: Calculating taxes and social contributions in a snap. 
  • Pay your team with a button click: Ensuring your staff are paid on time, every time. Quickly sync and approve secure online bank transfers.
  • Always-in-sync accounting and payroll records: Easily share real-time payroll data with our cloud payroll software in Thailand.

 

For FlowAccount customers, the FlowAccount Payroll program is available for issuing online payroll slips for free. New users can try both programs for free by visiting https://flowaccount.com and clicking “Sign Up for Free.”

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