Salary Certificate Formats and Samples
So… why do you need a salary certificate in the first place? We will allow you to answer this question on your own. Let us assume that you are looking at someone else’s salary certificate. What will you come to know about that person? One thing that you will come to know for sure is the type of money power the person holds. In other words, you will get a fair idea of the total bank balance the person has just by looking at his or her salary slip and also by knowing the duration for which he or she has been working. Anything else?
Umm… yes you will come to know something more. You see, a salary certificate is quite different from a pay slip. Some people get confused between the two. Let us take a quick look into the differences between the two and you will automatically come to the extra information you can get from a salary slip.
|Key parameters for differences||Salary Certificate||Pay Slip|
|Frequency of Issuance||Usually once a year.||Every month.|
|Sums up||Basic pay, allowances and deductions for a single month. Basically sums up gross and net pay.||Basic pay, allowances and deductions for a single month. Also sums up gross and net pay.|
|Additional information||May not include salary hikes due to market corrections in case the certificate is issued before the hike.||Because it is given out monthly, it will reflect the salary hike caused by market corrections.|
|Will never reflect the bonuses you earn unless you are entitled for a monthly bonus of a predefined certain amount.||Will reflect the bonuses you earn such as performance bonus.|
|Provident Fund number is usually not included in salary certificate.||A pay slip will always contain the Provident Fund number.|
|Provides additional info like date of recruitment, tenure of service, position held in the organization.||Date of recruitment and service tenure are usually not included. Position held is usually included.|
|Age and even date of birth are included in the certificate.||Date or birth and age are usually not included in pay slip.|
|Nature of employment, i.e. temporary or permanent is mentioned in the certificate.||Nature of employment may or may not be included in the pay slip.|
|Issuance||An individual person needs to issue the certificate.||It is usually a computer generated copy produced by the HR dept.|
|Declaration||The individual issuing the certificate needs to declare that he or she is authorized to issue the certificate.||No such declaration is made.|
|Official stamp and signature||The person issuing the certificate has to provide his or her official seal (designation) and signature.||In most cases it is computer generated and does not bear any signature or official seal.|
Now you must know the additional information you can find on a salary certificate. The question we asked was, ‘Why do you need a salary certificate in the first place?’ Let us answer this.
A salary certificate is usually required while taking out a bank loan or a loan from any other financial institutions.
Now the question is, ‘Why a salary certificate? Why not a pay slip?’ Let us answer this as well.
- Some lending organizations are okay with the pay slip as a statement of income. Some however ask for a salary certificate. The reason is simple. Because a pay slip does not contain official seal or a signature, there may be chances (though very slim) that someone can easily forge the document. This is extremely difficult in case of a salary certificate because finding the official seal and getting the signature is not easy.
- A salary certificate reflects some useful information like service tenure, employment nature, age, etc. Lenders can trust on these information, thereby effectively cutting the amount of background check required against a loan application.
- Finally, a salary certificate is issued by the employer. It is highly unlikely that the employer will provide incorrect information as it can lead to legal troubles at later stages.
Samples and Format of Salary Certificate
Okay, now that we know the key differentiators between pay slip and salary certificate and we also know the use of a salary certificate, let us take a look at the samples and formats of typical salary certificate.
First thing you need to know is that there is no unique format for a salary certificate. Different organizations prefer to follow different formats. As long as the certificate issued to you has the following set of information reflecting on your salary certificate, it is acceptable irrespective of the format used:
It is something like this:
It is hereby certified that Mr./Ms. ____________________ is an employee of _____________________. He/She has been employed for the post of ____________________. He/She joined the organization on __ / __ / ____. His /Her pay scale is ____________ and he / she is entitled for gross monthly emoluments of _______________.
Employee Name : ________________
Date of Birth : ________________
Age as on __ / __ / ____ : ________________
Date of Employment : __ / __ / _________
Gender of Employee : _________________
Employment Type : Permanent or Temporary
Employment Address : ________________________________________________________
Residence Address : ________________________________________________________
- Basic pay: _______________
- HRA: _______________
- DA : _______________
- CCA: ______________
- Other Allowances: ______________
Gross Pay: ____________________
- PF or CPF: __________________
- Home Loan Deductions: _____________
- LIC Deductions: _______________
- Income Tax Deductions: _____________
- Service Tax Deductions: _____________
- Other Deductions: _______________
Total Deductions: _______________
Gross Pay – Total Deductions: _______________
I hereby declare that I have been authorized by ____________ organization to issue salary certificate to Mr. / Ms. _______________. I certify that the information provided above are accurate to the best of my knowledge and are as per company records. I also certify that apart from the mentioned deductions there are no other recoveries from monthly pay of Mr. / Ms. ______________.
Date: Name, Designation and Official Signature
Important thing to note
When we speak of format of a salary certificate, we essentially talk about the arrangement of the details (as mentioned above). Some, companies may issue the certificate in the exact same format as shown above. Some may use a tabular format. You must remember that the amount of information included in the certificate may vary from company to company. This is simply because different companies may have different allowances and different deductions.
Different samples and formats of salary certificate
A simple format:
A tabular format:
Where to find a salary certificate template?
If you are an employee of an organization, you will not really need to look for a template. The company you work for already has the format template available. They will simply fill in the details and provide you the salary certificate.
If however, you are an employer and you need a format, you can always create one. It is never wise to use a premade format because different companies have different pay structures and deductions. You will know what kind of deductions you make.