Download these several Free Salary Certificate Templates in MS Word format to review before coming up with your own letter for printing.
There are dozens of occasions or reasons when someone is asked to provide details of his or her income. For instance, you are applying for a home loan and the bank gives you a wide list of documents to obtain. Among those essential documents, there will be a document called a salary certificate. This document is created by the employer and it gives an official verified analysis of one’s income before and after all deductions and compensations.
There are basically two concepts regarding these certificates; one is a salary certificate and the other is a salary certificate letter. Although you might not think that they are different in fact, there is a difference in both of these. When you ask your employer to write you a salary certificate without specifying who will receive it, it’s a salary certificate. If the same letter is written to the manager of a bank or a loan company, it would become a salary certificate letter because now it’s official communication between two companies.
Importance of a Salary Certificate:
The most important and basic purpose of a salary certificate is to prove how much you earn. This salary certificate is a legal document that shows your income and it can be used anywhere it’s needed. For instance, if you are applying for a loan or credit card, no bank or Credit Company will authorize credit or loan without confirming if you will be able to return it and they can only give surety of credit or loan return if they know how much you make each month. If you agreed to a $2,000 return each month for a loan, the bank needs your salary certificate to see how much you make and if it’s possible for you to pay $2,000 every month after all expenses.
Not only that a salary certificate is required when you get a loan but it’s also essential to produce one when you are buying something on credit or in installments. Whether it’s a piece of property or a car, the seller wouldn’t allow it unless they see that your salary certificate indicates you will be able to make monthly installments. Another scenario is when you are traveling abroad on a study visa and the host country wants to see your guardian’s salary certificate and bank statement. These documents will tell the authorities that your guardian will be able to afford your education expenses and you will not need to do any part-time job which is prohibited in most of the countries that allow study visas.
Salary Certificate Format:
Basic Employee Details:
The salary certificate will start by stating the name of the employee whose salary certificate is being created. This will mention his full name, his designation, the department in which he works, and name of the company where he works, and the date on which the salary certificate is created. Below these details, there should be a subject that states it’s a salary certificate or salary certificate letter. After that, it’s important to mention the month that is under discussion with regard to the salary.
Salary details including Deductions:
There can be any format of a salary certificate as long it includes all the necessary details. Usually, small companies go with a common format that is available online but bigger organizations design their own format for the certificate. Generally, there should be two separate columns. 1st column should include the basic salary and additional benefits i.e. medical allowance, travel allowance, or house rent compensation. Basically, the 1st column will include everything that the employee is getting either its salary or additional compensation. 2nd column is the place with all the deductions whether it’s tax deduction or insurance fund or retirement fund. After adding all these figures in both columns, there should be a heading for net received income and it’s calculated after all the additions and deductions. This is the exact figure that the employee got in the specified month.
Details of Authorized Person:
After all the above details, at the bottom of the certificate, there needs to be a section for the details of the person stating that the above information is valid and true. This has to be the authorized person in the company and he should have the authority to prepare and sign these certificates.
Free Salary Certificate Templates:
Here are previews and download buttons for these professional Salary Certificate Templates.
Here is the download button for this Salary Certificate Design.
Check out another good-looking Salary Certificate Template in MS Word format to help you prepare your own Salary Certificate when and if required.
Here is the download button for this MS Word Template.
Yet another letterhead design to print a standard Salary Certificate to oblige your employee.
To download this Certificate Template, please click on the button below.
Still, need one more? Here is another attractive Salary Certificate in MS Word format.
Get this Word Template by pressing the below download button.
Salary Certificate Mistakes to Avoid:
While preparing your own Salary Certificate in 2018 or 2019 Standard Format, please avoid the following common mistakes,
- Don’t address someone in particular – To Whom It May Concern is good to go.
- No need to include details of Salary such as any Advances or extra Bonuses being offered.
- Clearly mention if your employee is on a probation period and/or is on a contract basis. Limited and unlimited Employment should be there in writing.