Quick answer: A salary certificate is a letter from the employer, on letterhead and signed by an authorised person, confirming that someone is employed and stating their salary with a breakup. It is used for loans, visas, rent agreements and government applications. It differs from a salary slip (issued every month), an employment letter (confirms employment, often without salary) and Form 130 (the annual TDS certificate that replaced Form 16). A ready format is below.
Employees ask HR for salary certificates more often than for almost any other letter: for a home loan, a credit card, a visa, a rented flat or a school admission. HR teams need a standard format that answers what banks and embassies look for, and a clear process so the figures are always correct. This guide gives a salary certificate format with a sample, explains the types, and shows how a salary certificate differs from a salary slip and other documents. For monthly payslips, see our salary slip format. It is part of our guide to payroll reports.
What is a salary certificate?
A salary certificate (in Hindi, vetan praman patra) is a formal letter in which the employer confirms an employee's employment and pay. It is issued on request, for a stated purpose, and reflects the salary as of the date of issue. Unlike a payslip, which is generated automatically each month, a salary certificate is usually prepared by HR or payroll, checked against payroll records and signed by an authorised signatory.
What a salary certificate should include
- ☐ Company letterhead with name, address and contact details
- ☐ Reference number and date of issue
- ☐ Employee name, employee code, designation and department
- ☐ Date of joining and employment status (permanent, probation, contract)
- ☐ Monthly salary breakup: basic, HRA, other allowances, gross pay
- ☐ Deductions (PF, professional tax, TDS) and net (in-hand) salary, if required
- ☐ Annual gross salary or CTC, if required
- ☐ Purpose of the certificate (for example, home loan with a named bank)
- ☐ Name, designation and signature of the authorised signatory, with company seal if used
Salary certificate format (sample)
[COMPANY LETTERHEAD] Ref: HR/SC/2026/____ Date: __ / __ / ____ TO WHOM IT MAY CONCERN SALARY CERTIFICATE This is to certify that Mr./Ms. __________________ (Employee Code: ________) is employed with __________________ (company name) as __________________ (designation) in the __________ department since __ / __ / ____ (date of joining). He/She is a __________ (permanent / confirmed) employee. PAN: __________. Salary is credited to account no. __________ with __________ (bank). His/Her current monthly salary is as follows: Basic salary Rs ________ House rent allowance Rs ________ Special allowance Rs ________ Other allowances Rs ________ ------------------------------------------- Gross monthly salary Rs ________ Less: Provident fund Rs ________ Less: Professional tax Rs ________ Less: Income tax (TDS) Rs ________ ------------------------------------------- Net monthly salary Rs ________ Annual gross salary: Rs ________ (Rupees ______________________ only) This certificate is issued at the request of the employee for the purpose of __________________ (e.g., home loan with ABC Bank) and does not create any liability on the part of the company. For __________________ (company name) (Signature) Name: ______________ Designation: ______________ (HR Manager / Authorised Signatory) Company seal
To use this as a Word template, copy it into a Word or Google Docs file on your letterhead and save it as your standard salary certificate format. Keep the wording the same for every employee so that banks see a consistent letter. The figures should match the latest payslip, which our salary slip generator can produce.
Types of salary certificate
| Type | Used for | What to show |
|---|---|---|
| Monthly salary certificate | Loans, credit cards, rent | Current monthly breakup, gross and net |
| Annual salary certificate | Home loans, visas, scholarships | Annual gross salary or CTC, sometimes last 12 months paid |
| In-hand (net) salary certificate | Personal loans, landlords | Take-home pay after deductions |
| Salary certificate for visa or embassy | Travel and visa applications | Salary, designation, leave approval, return to work |
| Government employee salary certificate | Loans, government schemes | Pay level, DA and deductions, issued by the drawing officer |
State governments have their own formats for their employees. In Kerala, government employees' pay is processed through the SPARK system (SPARK Kerala), and the drawing and disbursing officer issues salary certificates under Finance Department orders (such as GO(P) No. 66/2021/Fin). These restrict certificates mainly to loans, require a recovery agreement, and exclude contract staff. Private employers in any state can use the general format above.
Salary certificate vs salary slip vs employment letter
| Salary certificate | Salary slip | Employment letter | Form 130 (TDS certificate) | |
|---|---|---|---|---|
| Issued | On request | Every pay period | On request | Once a year |
| Shows | Current salary breakup | That month's pay and deductions | Employment, designation, dates | Salary paid and tax deducted for the year |
| Signed | Yes, authorised signatory | Often system-generated | Yes | Yes, by the employer (deductor) |
| Legal basis | Company practice | Wage slip required under the Code on Wages | Company practice | Income-tax Act, 2025 |
| Main use | Loans, visas, rent | Proof of monthly pay | Background checks, visas | Filing the tax return |
Lenders often ask for a salary certificate plus the last three months' payslips and bank statements, and the latest Form 130 (formerly Form 16), issued by the employer after it files TDS returns (see the Income Tax Department). Our guide to the salary slip explains each line of a payslip.
How to issue a salary certificate
- Take a written request: by email or HR portal, stating the purpose and any specific format the bank or embassy needs.
- Pull figures from payroll: use the current month's salary register, not the offer letter, so the figures match payslips.
- Fill the standard format: on letterhead, with a reference number and date.
- Check: a second person checks the figures and spelling of the name against records.
- Sign and seal: by the authorised signatory named in the HR policy.
- Record: keep a copy and a register of certificates issued, with the reference number.
Common mistakes to avoid
- Showing CTC as monthly salary: CTC includes employer PF, gratuity and benefits. State gross and net salary clearly, and CTC separately if asked.
- Figures that don't match payslips: lenders compare them with payslips and bank credits.
- Inflating salary to help an employee get a loan: a false certificate can expose the signatory and the company to legal action. Never certify more than the payroll records show.
- Missing purpose or date: certificates are often rejected if they are undated, unsigned or older than the lender allows.
- Issuing to someone who has left: for former employees, issue an experience or relieving letter that states the last drawn salary, not a current salary certificate.
Generate matching payslips. Use the free salary slip generator to create payslips that match the figures in your salary certificate.
Frequently asked questions
What is a salary certificate?
A salary certificate is a letter issued by an employer, on its letterhead and signed by an authorised person, confirming that a person is employed and stating their salary, usually with a breakup of earnings and deductions. Banks, embassies, landlords and government offices ask for it as proof of income.
What is the difference between a salary certificate and a salary slip?
A salary slip is issued every pay period and shows that month's earnings, deductions and net pay. A salary certificate is issued on request, for a specific purpose, and confirms employment and salary as of a date, often as monthly and annual figures. Lenders may ask for both.
Who issues a salary certificate?
The employer, usually through HR or payroll, signed by an authorised signatory such as the HR manager or a director. For government employees, the drawing and disbursing officer usually issues it.
Is a salary certificate the same as Form 16 or Form 130?
No. Form 130, which replaced Form 16 under the Income-tax Act, 2025, is the annual TDS certificate showing salary paid and tax deducted in a tax year. A salary certificate is a general letter confirming current salary for a purpose such as a loan or visa.
Can an employer refuse to issue a salary certificate?
No specific law requires a salary certificate on demand, but most employers issue one as a matter of policy. Employers must, however, issue wage slips under the Code on Wages, and employees can use those along with bank statements as proof of income.
Is an in-hand salary certificate different?
An in-hand or net salary certificate states the take-home pay after deductions, which some lenders and landlords ask for. Many certificates show both gross and net salary, so one letter serves both purposes.
Position as of 15 November 2026. The format above is a general template; banks, embassies and government departments may ask for their own formats. General information, not legal advice.