Salary Certificate Format

A salary certificate is a detailed and transparent document forming the basis for employee taxation. It gives complete information of the employee, designation, experience, promotions, salaries, etc. The HR department issues the salary certificate on the employee's request, which is duly stamped and sealed by a director of the company.

This certificate gives complete information about the net salary, that is, the gross salary along-with the allowances, minus the deductions. The employer withholds from the employee's check in the form of deductions, so as to make payments to tax agencies as per the statutory requirements. A salary certificate begins with the name and address of the organization, followed by the individual's details like name, date of joining, position held in the company, and the net salary he/she is being paid.

The following format will help you understand a salary certificate in a better way.

Sample Format
Company Name
Address
Phone
Website

To Whom It May Concern

This is to certify that Mr./Ms._________________ is employed with (company name) since (MM/DD/YYYY). He/She is a permanent employee of the company, serving as (designation). Currently, he/she is drawing a salary, with the breakup as under:

Salary	Amt	Deductions	Amt
Basic Pay	$$$	Federal Income Tax	$$$
House Rent Allowance	$$$	Social Security	$$$
Conveyance Allowance	$$$	Medicare	$$$
Gross Salary	$$$	Total	$$$
Net Payable Salary (Gross Salary minus Total)			$$$

This certificate is issued to Mr./Ms.____________ on the individual's request.

HR Department
Company Name
Address
Date: (MM/DD/YYYY)
Another format of the salary certificate is as under:

Salary Certificate
Company Name
Date: (MM/DD/YYYY)

This is to certify that Mr./Ms.___________________ (employee name and ID) is working with our organization as ______________ (title of employee) since _________ (date of joining). He/She is fully dedicated to his/her job, and is totally sincere towards the organization.

We are issuing this letter on special request of Mr./Ms.____________ (employee name), stating that our organization is not liable for any consequences on behalf of this letter or part of this letter.

Regards,

Company Signature
Company Stamped
Date: (MM/DD/YYYY)
An employee, at the time of joining, fills form W-4. This form gives the employer full details with respect to marital status and what allowances the employee would like to claim. Thus, the employer knows how much to deduct from the employee's earnings. The allowances and standard deductions depend upon the company, but in lieu with the rules and regulations prescribed by the government.

Benefits of a Salary Certificate

• For an individual in search of a new job, this certificate is considered valid proof with respect to him/her being an employee of a particular firm, and the salary earned. Therefore, the prospective employer gets an idea as to how much salary to quote to the candidate.
• The certificate is also beneficial in obtaining a loan, credit card, and insurance, as it is considered a good substitute to the creditworthiness of the individual.

Thus, the certificate proves beneficial to both, the employer and the employee.

One must note a common misconception with regards to a salary certificate and a pay slip or a salary slip. While a salary certificate is issued for the period employed in a financial year, the latter is issued with respect to a specific month only.