Salary Certificate: Download Salary Certificate Format in Word



The salary certificate can be defined as a document that is issued and verified by the head of the department where the employee works. Hence, it can be said that a salary certificate is employment verification document issued by an employer on organization letter head with company stamp and authority signature to the employee. It signifies the association of the employee with the organization and states information related to employee’s salary, employment period, and salary paid for a certain timeframe. It is a sort of proof that validates that the employee is working in the organization and getting paid for his services.

How to create Salary Certificate Online

Here is the Step  by Step Guide to Make a Salary Certificate

  1. Once you download salary certificate format (word/excel/pdf), you will be able to edit it as per your requirements. However, it must be noted that editing could be done only in word and excel formats.
  2. To create your salary certificate in word/excel formats, you need to enter the basic details such as name, residential address, organization’s name, organization’s address, etc.
  3. After entering all the details, you can take out a color/black and white print out of the document and get it verified by the organization head with the organization stamp and signature.

Salary Certificate Template in Word Format

Download Salary Certificate in Word Format 1

Download Salary Certificate in Word Format 2

Download Salary Certificate in Word Format 3

Salary Certificate Template in Excel Format

Download Salary Certificate Template in Excel Format

Salary Certificate Template in PDF Format

Download Salary-certificate-PDF format 1

Download Salary Certificate in PDF Format 2

Download Salary Certificate in PDF Format 3

Download Salary Certificate in PDF Format 4

Components of Salary Certificate

Some organizations provide the total deduction and allowances in detail in the salary certificate, while the other organizations furnish the details of the total allowances that are paid to the employee. Components that are present in the salary certificate of an organization are stated below:

  • Name of the employee
  • Employer code if any
  • Basic Salary
  • Gross Salary
  • Status (temporary/permanent)
  • Total allowances
  • Date of joining
  • Address
  • Cost to company
  • Designation
  • Department
  • Authority signature
  • HRA house rent allowance
  • DA dearness allowance
  • Medical allowance
  • Special allowance
  • Travel allowance
  • Provident fund deduction

Use of salary certificate for employee

A salary certificate is a vital document that validates the fact that the employee works for a particular company and it specifies the employee’s monthly income. Salary certificate can be requested for the following purposes:

  • Bank transactions
  • Tax payments
  • applying for bank loans
  • Applying for credit card

Need of Salary Certificate while applying for a loan or credit card

When an individual applies for a loan or a credit card in India, the banks or the other financial institutions ask the individual to provide some basic documents along with the loan application. Necessary documents that are required to be submitted for availing a loan or credit card are address proof, identity proof, salary certificate that shows all the deductions, and TDS certificate (form 16). The salary certificate is a vital document that proves that an employee works in a company and has a fixed monthly income.

Some of the organizations put restrictions on issuing a salary certificate, more than once in a financial year. In these cases, a photocopy of the last salary certificate, salary slips of three months, and a TDS certificate would be the ultimate solution.

Salary Certificate Format for Bank Loan

The employer can be asked to provide the salary certificate for availing bank loans and it can be issued without any specific format. The format of the Salary Certificate contains some vital information related to an employee’s salary break-up including the term. The break-up of salary certificate format should be under the following headers:

1. Salary Certificate Format to Show Gross Pay and Allowances

Under this heading, the salary certificate is stated in detail, which includes the amount of pay an employee is entitled to receive from the employer. It shows the Gross Salary amount, that includes the sum of the basic salary, HRA, DA, medical allowances, etc.

2. Salary Certificate Format to Show Deductions

Here, the salary certificate shows all the figures that are needed to be deducted from the salary like Income Tax and other taxes to be deducted at source, loan installments, advances repayable by the employee, employee provident fund contributions, etc.

At the end of the section, the salary certificate shows the total of all the deductions. Also, it must be noted that the salary certificate format of a bank loan should have a net salary to be paid to the employee, which is the gross salary minus the total deductions.

Salary Certificate from the employer

Salary Certificate from the employer is a certificate that is issued by the letterhead of a particular organization, specifying the details of employment, monthly salary, and the incentives received by the employee.

 

This certificate can only be issued by the employer and acts as a verification document for availing loans since it comprises information related to the employee’s monthly salary and employment term.

What is Salary letter?

A salary letter is a request letter from an employee to the department head for releasing their salary. Hence, it can be said that it is the internal correspondence between the employee and the head of the institution.

What is the Salary Certificate letter?

Salary Certificate letter can be defined as a salary certificate that is addressed to a particular financial institution for obtaining financial services such as home or car loans. It is an official correspondence between two organizations about an employee and cannot be submitted to any other institution.

Difference between salary certificate & salary letter?

Salary Letter and Salary Certificate are similar in all aspects except for one thing. A Salary certificate addressed to a bank or other financial institutions is known as Salary Certificate Letter and cannot be given to any other financial institutions when a loan request is rejected.

On the contrary, a Salary Certificate is issued to an employee as a certificate and an employee can use it for other institutions if the others have rejected his/her loan application. Other than this difference, all components that are, salary earnings, deductions, net total, etc, will be the same in both the documents.

What is Payslip or salary slip?

Payslip or salary slip is a document that an employer provides to the employee as proof of his/her salary. A salary slip consists of all income earned, exemptions, deductions, and taxes cut from the employee’s salary. Employers can share the salary slip with employees in both paper or mail format. Both the type of payslips has the same validity and importance.

However, one should keep in mind that modifying an issued payslip is considered a criminal offense. Hence an employer has to make certain that employees will not be able to modify the payslip. For this reason, salary slips are generally given in PDF format.

Importance of Payslip or salary slip

  1. Payslip acts as an important proof of employment
  2. One can avail loans, mortgage, or other borrowings with the help of salary slips as it makes sure that their lending will be repaid.
  3. Salary slip is an important proof of income that helps one to file his/her income tax returns.
  4. Having a valid salary slip helps one to access to various facilities furnished by the government like medical care, etc.
  5. Payslip helps in negotiating salary with new employers for better pay.

Difference between salary slip and salary certificate

Several employees work in an organization and contribute their part in the organization’s profit. Their work and efforts are paid back as a sense of gratitude by the organization in the form of salary slip or payslip that has the detailed calculation for the net amount paid to them whereas few other organizations provide their employees with Salary Certificate that is the proof for the salary paid to them. These certificates or payslips consists of the name of the employer, the paying party, the receiving party who is employed, and the employee’s address that shows the detailed amount of money being transferred to him/her after deducting tax and other contributions due to him. The salary certificate also furnishes details like the net amount paid to the employee after considering his dues towards the organization and also the amount of advance amount paid by the enterprise to him/her.

How to create Payslip or salary slips online?

Maintaining a record of the employees can be very painstaking for any business to run smoothly. Hence, organizations should use simple payslip systems that can handle multi payslip operations and can be easily customized as per requirements.

Employers can use online tools like https://makepayslip.com/ to create salary slips online.

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