What Is a Salary Certificate Letter?

A salary certificate or salary verification letter is a letter from an employer that shows the carrier of the letter commands an income and has a regular, dependable position, according to Rocket Lawyer. Lending agencies and banks frequently require that the prospective recipient of a loan produce a salary certificate letter in order to confirm that they are a trustworthy party with the means to repay.

Other instances in which a salary certificate letter might be needed include lease applications and other rental situations. The letter serves as a kind of guarantee on the party of the applicant's employer, establishing that the applicant is employed and trusted by their employer.

Businesses may also be asked to present salary verification letters for their employees. These letters help to establish the equity of employer records and also show that employees are being compensated fairly for the work they put into the company, states Rocket Lawyer. These documents are often requested in a lump, addressing all employees.

Salary certificate letters are typically written in a simple format. The format uses signatures at various points on the form to show that the employer acknowledges that the employee works for them, that they acknowledge and confirm the listed salary and that they vouch for the employee in general.