A salary certificate is a verification document issued by an employer to an employee to declare the salary he receives from his employment. It is issued by an authorized person of an organization on the letterhead of the organization. It shows the employees association with that organization and contains all the important information related to the details forming part of the salary such as basic pay, house rent allowance, and other allowances and facilities.
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Elements of Salary Certificate
The contents of the salary certificate may vary from organization to organization and hence the list mentioned below is only indicative and not exhaustive. It may include additional details apart from the details mentioned below.
- Name of the employee with employee code.
- Date of birth and address of the employee.
- Name of the organization.
- Date of joining the organization.
- Department and current designation in the company.
- Basic pay, dearness allowance, house rent allowance, other allowances, etc.
- Deductions i.e. Employee Provident Fund contribution, ESIC deductions, insurance, loans, etc.
Uses of Salary Certificate
- Acts as a document regarding employment in a particular organization.
- Details about various benefits offered as salary which are considered as part of salary.
- Banks may demand a salary certificate as a document regarding issuing loans. In such a case, a certified true copy of about 6 months is required. Therefore, you must ensure that only salary credit is not enough, you must ensure that all the salary sheets are properly collected and filed by you.
- Sometimes, a lot of deductions are made from the salary of employees, which may or may not be statutory. To get the specific details of such deductions and find out the salary received in our bank account, we need to know about all the deductions.
- Also, sometimes companies make a lot of deductions from our salary advance, or they add unnecessary allowances to it, such as food coupons, etc., which we cannot avail. We can find out these details through our salary sheet.
Difference between Salary Certificate and Salary Slip
Often the terms Salary Certificate and Salary Slip sound similar, but these are two different terms. The main point to differentiate them is the time frame. A salary slip is issued for a month, say March 2020 whereas a Salary Certificate can be issued for a fixed period which can be as per the requirement or a complete financial year or the required period. It can also be your entire tenure in the company.
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Format of Salary Certificate
Attachment
- Salary certificate format in MS Word (.doc) file format
- Salary certificate format in MS Excel (.xls) file format
- Salary certificate format in pdf file format
- Salary certificate format in jpg file format
Format of Salary Certificate
| Name of Company | |||
| SALARY PAYSLIP | |||
| NAME | Mr. ______ _________ ____________ | ||
| PAN | _________________ | ||
| MONTH | _________________ | ||
| EARNINGS | DEDUCTIONS | ||
| SALARY HEAD | AMOUNT (Rs.) | SALARY HEAD | AMOUNT (Rs.) |
| Basic | ——- | Profession Tax | – |
| H R A | – | TDS | ———- |
| Conveyance allowance | – | Salary Advance | – |
| Children/ Self Allowance | – | ||
| Spl. All | – | ||
| Others | – | ||
| Medical Allowance | – | ||
| SALARY (GROSS) / PM | ————- | ||
| Ex gratia | – | ||
| Medical (Reimb) | – | ||
| Conv (Reimb) | – | ||
| Telephone (Reimb) | – | ||
| Others (Reimb) | – | ||
| SALARY (CTC) / PM | ————– | TOTAL DEDUCTION | ———– |
| Cash in Hand (PM) | ____________ | ||
| Prepared by | Checked by | Authorised by | |
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