Salary Certificate: Everything You Need to Know
Understanding the Importance of Employment Salary Certificate in the UAE and what is its format
A salary certificate is a document issued by your employer that will allow you to apply for a loan or credit card at a bank. This document can be issued by the company for which you work at any time and specifies details of your salary. Also, similarly, through a salary letter, you can make a more specific request.
In this article, we will explain in detail each of the aspects related to this certificate. Likewise, we provide you with some sample UAE salary certificate format and salary letter details. Let us see:
- What is a salary certificate?
- Why do banks ask for an employment certificate UAE?
- Why do you need a Dubai salary certificate to apply for a loan or credit card?
- Salary certificate format in the UAE
- Usefulness of the salary certificate for an employee
- What is a request letter for salary certificate?
- What is a salary payslip?
- Salary certificate attestation
- Connect Legal offers assistance with this certificate
1. What is a salary certificate?
A salary certificate UAE is a document that demonstrates your employment with a company and your right to a salary. Therefore, the said document is issued by the employer with whom you work and contains details of your employment with the company. In addition, this certificate must be on paper, with company letterhead and the signature of authorized personnel.
Additionally, this document is not addressed to any particular institution and can be requested for various reasons. However, when we talk about a salary certificate request letter, it is addressed to a specific entity or organization. Also, the letter should explain why the employee made the request.
On the other hand, the certificate is mandatory if you wish to apply for a loan, credit card, or immigration procedure. Likewise, although each bank may have a different UAE salary certificate format, the information is the same. In this case, if the bank has a different format than your company, you must notify HR of the same.
2. Why do banks ask for an employment Salary certificate UAE?
The financial institution in the UAE needs a salary certificate to know your ability to pay. Normally, this happens in case you want to obtain any of the following benefits:
- Credit card
- Mortgage loan
- Personal loan
- Loan for a vehicle
- For any other type of loan
In this way, the bank can evaluate your savings in your bank statements and your income through the salary certificate format Word issued. Thus, the bank can ensure that the applicant has a regular income and the potential for repayments. Therefore, the said certificate allows you to check your earnings and your position in the company for which you work.
Also, this is one of the factors that financial institutions use to determine your creditworthiness in the case of the requests listed above.
3. Why do you need a Dubai salary certificate to apply for a loan or credit card?
As mentioned above, the bank will require a salary certificate Dubai to apply for any of these benefits. Then, this is one of the essential requirements to be able to apply for a loan or credit card. In addition, it must be accompanied, commonly, by the following documents:
- Valid passport
- Valid visa
- Pay slip or updated salary certificate
- Bank statements for previous months
Therefore, financial institutions will not process your application if you do not present the corresponding certificate. Thus, if you want to apply for any type of credit card loan, be sure to process your certificate before applying.
4. Salary certificate format in the UAE
Each of the UAE banks may have its own salary certificate format in Word for applications. However, the most important information that must be included in this certificate is the following:
- Date of issue
- Name of the employee
- Employee position
- Job Description
- Start date of your work
- Gross and net salary
- Benefits (housing, rent, transportation, utilities, and others)
- Refunds
- Signature and contact information of the official
Moreover, depending on the needs of the employees or the purpose of the request, this information may vary. Also, there are other formats related to a salary that you may need in these cases such as the salary slip format in UAE.
Also, this type of document shows relevant information regarding your salary at the company that issues it. Then, you may need a letter format for salary certificate if you require this type of document.
4.1 Simple salary certificate format Word
Here is a general example of a certificate with a UAE date format and the required data:
Salary certificate
This certificate is to assure that Mr. / Mrs. ______________________________ residing in ____________________________, works permanently in ________________________ with the position of ___________________________________ and has received his/her salary and allowances in the month of ______________________ (Month and year) in the following way:
Gross salary (in Dirhams )Basic paymentHRAMedical bonusTransportation bonusOthersGross salary (1)Deductions (2)Net Salary (1-2) = AED _______________Net salary (in words) = AED _______________________________________________________
Date of issue: _____________________________________________
Date of joining the company: _____________________________________________
Actual charge: _____________________________________________
Retirement date: ______________________________________________
Salary certificate issued to: _____________________________________________
By: _____________________________________________
Signature and title of authorized personnel: ____________________________________________
Signature of the employee: _____________________________________________
Place: Company seal:
Date:
This salary certificate format UAE may vary according to the requirements of the bank or the reason for it.
5. Usefulness of the salary certificate for an employee
This type of certificate is useful for banks or financial institutions to check salary for various applications. Also, we have already mentioned that it is useful for applying for loans or credit cards. In addition, since it is not addressed to any specific person or institution, the employee can use it for other purposes.
Therefore, together with the receipt and a letter for the salary certificate request, this document is useful for personal purposes. For example, it can help to sponsor your relatives to reside in the United Arab Emirates. Thus, immigration authorities can determine if you have the necessary income to meet the needs of your family.
In addition, it is important, for the latter case, to have a no-liability letter from adcb to certify your economic solvency.
6. What is a request letter for a salary certificate?
A salary letter is addressed to a specific bank or financial institution and explains why the certificate was issued. Therefore, this requesting letter for salary certificate may only be used for the purpose explained in it. Thus, if you want to apply for a loan at a specific bank, this letter should be addressed exclusively to that institution.
Consequently, you will not be able to use it to apply for a loan at a different institution or any other purpose.
7. What is a salary payslip?
In addition to the salary certificate, you may need your last pay slip. This payslip (or salary slip) is the legal document that the company gives its employees with each payment made. Therefore, it contains each of the details of the payment, including the net salary and the deductions in case there are any.
Moreover, this document is useful when you change jobs, as it allows you to know everything about your salary. Thus, you can negotiate a better salary based on the salary received in your previous company.
7.1 What elements does a salary payslip include?
In the same way as the salary certificate UAE, the receipt must contain various details of the salary of the employee. Of course, it includes basic information such as the date of issue, the name of the institution, the name of the employee, etc.
Likewise, it must contain the basic and net salary, as well as the allowances of the worker, benefits, and deductions. Additionally, you can include salary advances received, if any.
7.2 Differences between Dubai salary certificate, letter, and payslip
Next, you will be able to see the differences that exist between the various documents mentioned up to this point.
7.2.1 Difference between a salary letter and a salary certificate Dubai
A letter of salary is addressed to a certain institution and specifies its purpose of it. Therefore, the employee cannot use it for a purpose other than what is written on it. Likewise, you may not use it in a different institution or organization, even for the same purpose as the letter.
On the other hand, the salary certificate format is not addressed to a specific institution and does not have a specific purpose. That is, you can use it for any purpose and in any institution or organization where you need it.
7.2.2 Difference between a salary voucher and a salary certificate
Many workers tend to confuse a salary slip with a salary certificate UAE even though they are different. In the case of the former, it details the amount of money received at the end of each payroll period. In addition, it details each of the deductions that they receive in their gross salary in each of said periods.
However, the certificate is the document that certifies your work in a company and your salary entitlement. Additionally, the company issues the certificate if you intend to apply for a loan or credit card. On the contrary, the pay slip is not issued by the company for a specific reason but is something routine.
8. Salary certificate attestation
Government departments require attestation of said certificate in case of the various requests listed at the beginning. In this sense, the UAE Ministry of Foreign Affairs is the entity that must authenticate this certificate. The documents that the employee must present in case of attesting the said certificate are the following:
- Original and copy of the salary certificate UAE
- Original passport of the employee
- Copy of the passport of the applicant (first and last page)
Also, the employee must be at the certification site during the process of attestation. Nevertheless, you may be asked for other supporting documents and you will have to pay the costs of the process. Therefore, you can carry out the procedures that you legally require in the institution where you require the certificate.
Salary certificate
We hereby certify that Mr. / Mrs. ______________________________ with passport number ____________________________, works permanently in ________________________ with the position of ___________________________________ since ________________________________. The salary received during the month of ________________ was as follows:
Gross salaryBasic paymentHRABonus XXXXXXXBonus XXXXXXXOthersGross salary (1)Deductions (2)Net Salary (1-2) = AED _______________Net salary (in words) = AED _______________________________________________________
Date of issue: _____________________________________________
Retirement date: ______________________________________________
Certificate Issued for: _____________________________________________
By: _____________________________________________
Signature and title of authorized personnel: _____________________________________________
Signature of the employee: _____________________________________________
Place: Company seal:
Date:
9. Connect Legal offers online Legal Advice in UAE
The certificate that allows you to know your salary details is an essential document to apply for a credit card or loan at a bank. This is because it allows the financial institution to know if you have the economic solvency to receive any of these benefits. In addition, you must certify it through the Ministry of Foreign Affairs of the country for its validity.
In this case, our company can offer you the assistance you need, as well as with the salary transfer letter format in the UAE. Furthermore, we have extensive experience in legal areas such as:
- Corporate business law
- Family law
- Criminal law
- Commercial property
- Divorces
- Construction laws
- Immigration laws
- Financial laws
- Labor law
We can help you with the salary certificate Word format and other labor legal issues.
Therefore, you can contact us by phone at +971 433 16 688. In addition, you can make your inquiries and express your doubts to the email [email protected], which you will receive immediate attention.
