What is The Use of a Salary Certificate in The UAE?
What is a Salary Certificate UAE?
A salary certificate UAE is documented proof of your employment and salary entitlement provided by your employer. It is issued by the employer on the employee’s request. This document usually holds details about your employment with the company. It is usually printed on the company’s letterhead with the authorized personnel’s signature and seal. It can be used for multiple reasons and is not addressed to any specific organization.
However, a salary certificate letter is addressed to a particular organization and states the reason behind issuing the certificate. Often, a salary certificate UAE is confused with a pay slip. A pay slip holds the details of the amount of pay that you receive and the amount of tax or insurance deducted.
A salary certificate UAE is a compulsory document if you apply for a Personal loan or credit card. It is proof of your salary and employment. Most financial institutions and banks have their own set format for a salary certificate UAE, but the information required is the same. If the bank or institution you are seeking has a set format then it is important for you to inform your company regarding the same.
It is important to confirm that the salary certificate is printed on the official letterhead of the organization, signed by the authorized signatory, and carries a rubber stamp of the organization.
How Does a Salary Certificate look in UAE?
There can be multiple variants of the salary certificate UAE required by banks. However, the key points include:
- Date of issue
- Name of the employee
- Gender of the employee
- The position held by the employee in the organization
- Job designation/profile
- The joining date
- The gross and net amount of salary
- Allowances (if any)
- Benefits (if any)
- Name, contact details and address of the official who signs it
Why Do Banks Ask For a Salary Certificate UAE?
When you approach a financial institution or a bank for a credit card or a personal loan or a car loan or any other kind of loan, they need to determine your ability to repay the loan. This is done by them assessing your savings by looking at your bank statement, and your monthly income by evaluating your salary certificate. This helps the institution to ensure that it is lending funds to an individual that is holding a steady income and has the potential to repay the debt. A salary certificate acts as a verification for your position in the organization and your earnings. This information is a key factor used by the institution or bank to come at a decision regarding your creditworthiness.
Applying for a Loan or Credit Card in the UAE?
Most of the banks in the UAE require a salary certificate as a mandatory document when you apply for a credit card or any kind of loan. Depending on the type of credit card or/and loan the documents required by the banks or financial institutions may vary, but the general requirements are:
- You should be holding a valid Passport
- You should be having a valid Visa
- Your latest salary certificate or pay slip
- Your recent bank statements
Most of the institutions will not process your credit card or loan application if you do not provide a salary certificate. Therefore, this document holds great importance in the loan or credit card application process.
The Bottom Line
It is also good to know that in UAE most government departments require attested documents for processing requests such as applying for a loan with a financial institution or a bank, sponsoring your family, etc. Salary certificate UAE is one such document that needs attestation.