Salary Certificate Template

A salary Certificate is a very clear, transparent, and detailed document that makes the basis for employee taxation. It holds complete evidence about the employee’s name, designation under an organization, experience, work tenure, promotions, salary details, deductions, etc. the HR department of the organization is liable to prepare and issue this document if the employee demands it. This document is considered privacy sensitive and is usually stamped and sealed by the director of the organization.

Employees need Salary Certificate for various reasons, for instance when they apply for a new job vacancy or a bank loan. The potential employer checks this document to get an idea about how much salary should be quoted to the particular candidate. The bank authorities ask them to bring some of the basic documents along with the loan application form including the Salary Certificate and the latest salary slip attached. There are many other purposes behind getting this document. People need it when they apply for a credit card, get an insurance policy, have taxation procedures, and many more, as it is a valuable substitute for the creditworthiness of the employee.

Usually, the organizations issue a Salary Certificate that is valid for one financial year. But some organizations may entitle the employee to this certificate up to 4 times in each quarter-year gap. In such a case, a photocopy of this document is a solution.

Here is a preview of a Free Salary Certificate Template created by  our staff using MS Word,

Salary Certificate Template

Here is the download link for this Salary Certificate Template,

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The Salary Certificate document is equally valuable for both parties, the employee and the employer. Basically, the Salary Certificate document provides the following information about an employee: designation, net salary, promotions, or incentives if any. Net salary is the gross salary along with the allowances minus the deducted amounts of salary. Deductions are usually the amounts the employer withholds from an employee’s paycheck. These deducted amounts are usually used to make payments to tax agencies according to the requirements. The allowances and standard deductions rely entirely on the employer or the organization, but in lieu of the rules and regulations defined by the government.

In the majority of cases, Salary Certificates are issued without a clear configuration. The Salary Certificate Letter must contain some important data identified with the employee’s pay details and salary break-up including tenure. A Salary Certificate is an official certificate that must contain an employee’s monthly earnings, monthly total deductions, salary break-ups, and an outline of net pay received during the month. It ought to be able to express the financial position of the employee alongside personality details, position, and remaining years to retirement.

Gross pay and allowances are to appear on the Salary Certificate document. Under this consideration, the Salary Certificate form demonstrates the sums an employee is qualified to get from the employer. The salary Certificate demonstrates the gross salary sum which will be the whole of the considerable number of figures. Under the deductions section, the Salary Certificate document demonstrates each and every figure of whole pay that is to be deducted from the salary similar to income tax and other taxes to be deducted at source otherwise called TDS, installments of loans, or progresses repayable by the employee, and so forth. The gross salary also called net salary that is paid to the employee is stated exclusive of the total deductions of salary.