A salary certificate is a formal document issued by an employer that serves as strong proof of an individual’s employment status, job designation, and income details. It is often required for various official purposes, making it an essential document for both employees and employers.
This blog will serve as a guide on everything employers and employees need to know about a salary certificate in UAE. Rest assured, we will cover the salary certificate format with all the main components, its importance and uses, as well as how to request for one.
What is a Salary Certificate in UAE?
A salary certificate in UAE is a documented verification of one’s employment and the compensation entitlement of the employer including a breakdown of base salary, allowances, deductions, and net salary. It contains all the details about your employment in a company and is issued on the company’s letterhead with the authorized personnel’s signature and seal. It is used for many different reasons, especially when applying for a credit card or personal loan.
Salary certificates are not addressed to any other organisations and are generally valid for a specific period, usually three months.
Importance of a Salary Certificate
A salary certificate is an important document issued by employers to validate the employee’s salary and employment status. Here are some of the key importance of a salary certificate in UAE:
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Proof of Income
In many financial processing activities such as loans, credit cards, and mortgages, the lending institutions need proof of income. A salary certificate is one of the most solid, strong, and reliable documents that can be used for these purposes.
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Proof of Employment
A salary certificate has all the details to prove your employment status in a company, as well as your designation. It proves to be useful in many financial and legal dealings.
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Financial Planning
A salary certificate provides an easy breakdown of all the important information needed to create future plans like retirement, children’s education, or building a house.
What Is The Use Of a Salary Certificate For An Employee?
Employees request a salary certificate in UAE for many reasons to present their proof of income. Some of them include but are not limited to the following:
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Loan Applications
Banks and similar lending institutions will need to see proof of your income before they can process or sanction a loan. This rule applies to almost all types of loans, whether personal, home, or car loans.
Your salary certificate gives a clear insight into your financial conditions and stability, which helps lenders assess and gain confidence in your capacity to pay the loan back on time.
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Visa Processing
Generally, candidates are asked to submit a salary certificate or slips for a period of 3-6 months as proof of income when applying for a visa, especially if the stay is going to be long. It helps the authorities determine a candidate’s financial ability to support themselves for the entire duration of their visit. This applies to most visas for travel, work, investor, residency (family sponsorship), and study (in some countries.)
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Rental Agreements
Some landlords or homeowners may request a salary certificate along with other documents to determine the tenants’ ability to pay the rent.
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Credit Card Applications
Financial institutions will request salary certificates to check your creditworthiness. It is also necessary to evaluate the extent or maximum amount of credit that can be granted, which significantly varies based on your income bracket.
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Tax Filings
A salary certificate in the UAE is used as proof of income when filing taxes. It is especially required in situations where there is a discrepancy or difference between the declared income and actual income earned. As the salary certificate has details about their income with a clear breakdown, it can prove useful in taxation scenarios.
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Legal Proceedings
In many legal proceedings or court cases, some candidates may be required to present a salary certificate to prove their source of income.
Salary Certificate Format in UAE
The exact format of salary certificates in the UAE can vary from one organisation to another. Some organisations may choose to have an elaborate breakdown of the details, while others may opt to keep it simple. Below is a visual representation and an easy-to-copy salary certificate format:
Salary Certificate
[Company Letterhead/ Logo]
[Company Name]
[Company Address]
[Phone Number]
[Email Address]
Date: [DD/MM/YYYY]
To Whom It May Concern,
This is to certify that Mr./Ms. [Employee Name], holder of the UAE Emirates ID No. [Emirates ID/ Passport Number], has been employed with [Company Name] as a [Job Title] since [Employment Start Date].
His/Her monthly salary details are as follows:
|
Basic Salary |
AED [Amount] |
|
Housing Allowance |
AED [Amount] |
|
Transportation Allowance |
AED [Amount] |
|
Medical Allowance |
AED [Amount] |
|
Others/ Miscellaneous |
AED [Amount] |
|
Gross Salary [Basic Salary + Total Allowances] |
AED [Amount] |
|
Deductions (if any) |
AED [Amount] |
|
Net Salary [Gross Salary – Total Deductions] |
AED [Amount] |
This certificate is issued upon the request of the employee for the purpose of [mention purpose, e.g., visa processing, loan application, etc.]. If you require any further information, please feel free to contact us.
Sincerely,
[Authorized Signatory Name]
[Designation]
[Company Seal/Stamp]
Components of a Salary Certificate
A salary certificate has many information when compared to a salary slip. Here are the main components included in a salary certificate in the UAE.
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Company’s Letterhead:
The official header that includes the company’s logo, address, contact number, and email.
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Date of Issue:
The exact date the salary certificate is issued.
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Name and Gender of the Employee:
The employee’s full name and gender (assigned at birth) as per official records.
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Employee’s Designation/Job Profile:
The position or role held by the employee within the company.
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Department:
The specific unit/ team where the employee is assigned (i.e. Marketing Department.)
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Date of Joining:
The date the employee officially started working in the company.
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Gross Salary:
The total salary before any deductions, including basic pay and allowances.
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Allowances and Benefits (if any):
Additional financial or non-financial perks such as housing, transport, and medical allowances.
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Deductions (if any):
Amounts subtracted from the gross salary for UAE federal taxes, social security, insurance, or other reasons.
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Net Salary:
The remaining salary after deductions are made from the gross salary.
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Cost to Company:
The total expenditure incurred by the company on the employee, including salary, benefits, and allowances.
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Company Seal:
The official stamp of the company to authenticate the document.
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Company Information:
This includes the signature, name, designation, and contact details of the company’s authorized signatory for salary certificates, such as the head of HR, as well as the organization’s business address.
Key Differences of a Salary Certificate from a Salary Slip and Salary Letter
Salary certificates are often confused with other official documents relating to an employee’s pay, such as a “salary slip” or “salary letter.” They are three separate documents that confirm a person’s employment status within the organization, each serving specific purposes and featuring unique components.
How to Request for a Salary Certificate in the UAE?
Obtaining a salary certificate in the UAE is a straightforward process. It is provided by the employer upon the request of the employee.
Here are the steps you need to follow to get a salary certificate in UAE:
1. Contact Your HR Department
Contact your HR department or the unit responsible for handling salary-related inquiries or payroll.
2. Specify the Purpose
Clearly explain the reason why you are requesting a salary certificate (e.g., for a bank loan, visa application, or rental agreement), as it will be reflected in the format. Also, mention if the purpose of the salary certificate requires you to provide your employee identification number or the company trade license.
3. Request Attestation (if needed)
Depending on the purpose of your request and the organisation requiring it, you may need to get a salary certificate attestation by the UAE’s Ministry of Foreign Affairs and International Cooperation (MOFAIC) or the Consulate General of your home country.
4. Allow Time for Processing
Employers typically require 1–3 business days to issue a salary certificate. This timeframe may vary depending on company policies.
5. Review the Certificate
Once you get the salary certificate, check for accuracy, ensuring it has all the necessary and correct details, as required by the organisation requesting the certificate.
Salary Certificate Attestation
An employee may need to get their salary attested for a variety of reasons, such as for employment abroad, visa processing, obtaining loans abroad, or completing international financial transactions.
Salary certificate attestation is the process of verifying the authenticity of your document through a regulating authority such as government departments, notary services, or embassies. Basically, this ensures that the certificate is genuine and can be legally accepted for official proceedings or matters.
Since the salary certificate is considered a personal document, the verification process to ensure compliance typically involves multiple stages, including notarisation, home department attestation, and final authentication from the Ministry of External Affairs or the relevant embassy.
State Home Department Attestation
Salary certificates should be attested first by the State Home Department and then sent to the MEA for further attestation.
MEA Attestation
After further scrutiny, the MEA will attest to the legitimacy and authenticity of the salary certificates in UAE by stamping the document with their seal.
Embassy Attestation
After the first two steps, the salary certificate is attested by the destination country’s embassy, enabling it to be used abroad legally.
The documents that are required to be carried by the applicant at the time of attestation are:
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The original salary certificate UAE and also a valid photocopy of the same.
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The applicant’s original passport and a valid photocopy of the first and last pages of the same are required.
Apart from these documents, the applicant must be physically present and be prepared to pay certain fees for the attestation. You may also be asked to present additional documents, depending on the purpose or the organisation requiring the salary certificate.
Key Takeaways on Leave Salary Certificate in UAE
In the UAE, a salary certificate is a crucial document for both employees and employers, serving as formal proof of employment and income. Understanding its format, components, and uses can simplify various financial and legal processes, from loan applications to visa procedures.
Whether you’re requesting a salary certificate or issuing one, ensuring accuracy and proper attestation is essential for its validity.
By following the outlined steps and guidelines, individuals and businesses can handle salary certificate requests seamlessly, meeting official requirements and supporting financial endeavors efficiently. Stay informed to make the process smooth and straightforward.
Frequently Asked Questions
How do I get my salary certificate in the UAE?
To obtain a salary certificate in the UAE, first, clarify the purpose for which you need it. Contact your HR department and provide the necessary information. If required, write a formal request and submit it to HR for processing.
What is a salary transfer certificate in the UAE?
It is an official document issued by an employer to confirm an employee’s salary details and employment status in a given company. This certificate is often required for various official purposes, such as applying for a loan, obtaining a credit card, or renting a property.
What is proof of salary in UAE?
Proof of salary is another term used for a salary certificate issued by the employer to confirm an employee’s job details and income. It is essential to legally process many applications such as loans, visa processes, rental agreements, and government services.
Who signs the salary certificate?
A manager or HR personnel must sign the salary certificate to authorise it and make it legally valid. The certificate needs to show the date it was created, contact details, the company’s phone number, company address, and employee number.
What is a salary transfer certificate in UAE?
A Salary Transfer Letter, commonly known as STL, is a document the employer of a company issues to the bank. This is especially required when the employee has to repay a loan. This allows the employee’s salary to be credited to his account until he fully pays the debt.
