A salary certificate is an official document provided by employers to their employees. Whether the employees get salary through online mode (or) by direct cash in both cases they can obtain a salary certificate from their employers.
Especially the employees who get their salaries through direct cash mode should need to get their cash salary certificate every month. It will act as their salary proof whenever they want to apply for a new job or any loans etc.
Here you can find a simple cash salary certificate format which can be used in all organizations.
Cash Salary Certificate Format
What is a salary certificate?
Salary certificate is an official document that acts as a proof for the employee that how much salary he/she is getting in their job.
How to write a salary certificate letter?
Write the name of the employee, and department and designation of the employee and mention his salary details like earnings and deductions for that particular month for which salary certificate is required.
What details do the salary certificate consist of?
- Name of the employee
- Designation of the employee
- Department in which he/she is working
- Gross salary
- Basic wage
- Allowances like HRA, CA, Medical & other allowances
- Deductions like PF, ESI, medical insurance, Professional tax etc…
- Salary paid month
- Authorized signatory and company stamp.
Difference between salary slip and salary certificate?
The purpose of both salary slip and salary certificate are the same. It is the choice of the employer to provide a salary slip or salary certificate to the employee.
Due to the latest payroll softwares and technological advances it is easy to generate salary slips (pay slips) when compared to salary certificates.
Can salary be paid in cash?
Under section section 40(a)(3) of income tax act 1961 upto 10,000 Rs the salary can be paid through cash.
How can I get a salary certificate if my salary is paid in cash?
You can ask your employer to provide you the cash salary certificate. They will give the salary certificate on their company letterhead signed by the authorized person in your organization.
Is salary certificate and form 16 the same?
No, both are different. The salary certificate consists of your salary details, and whereas form 16 is a TDS certificate that consists of your income details from various sources and tax details.
How can I issue a salary certificate?
Salary certificate can be issued only by your employer, so if you need a salary certificate then ask your employer to provide it. It is the right of every employee to get their salary certificate whenever they need it.
What is the use of a salary certificate?
Salary certificate is proof of salary, which can be used whenever the employee wants to change his and to apply for various loans etc…