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.
A salary certificate UAE is a compulsory document if you are applying for a credit card or personal loan in UAE. It is proof of your salary and employment. 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.
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.
What Is The Need Of A Salary Certificate While Applying For a Loan or Credit Card in 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 payslip/salary 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.
Salary Certificate Format UAE
There can be multiple variants of the salary certificate format UAE that is required by the banks. However, the key points of a salary certificate 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
What Is The Use Of Salary Certificate For An Employee?
A salary certificate UAE is generally needed by employees who are seeking to opt for some type of loan. Submission of this document is generally mandatory for the employees so that the financial institution or the bank can verify the applicant’s income and estimate his or her ability to repay the loan applied for. Therefore, the employers are required to issue such a salary certificate template when requested by the employee.
What Is A Salary Letter?
A salary certificate letter has an added section that is addressed to a particular financial organization or a particular bank and it also states the reason behind issuing the certificate. This document can only be used for the reason that is specified on it while applying for the letter.
For instance, if you are an applicant that is applying to ABC Bank for a personal loan, the salary certificate letter will be addressed only to “ABC Bank” for the purpose of seeking a personal loan. You cannot use this document for submission to any other institution or for a different purpose.
Salary Certificate vs. Salary Letter: The Difference
A salary certificate is proof of your income as well as your salary entitlement that is issued by your current employer. This document is not issued to any specific organization and neither does it have purpose specified on it. This means you can use it for different purposes and also across different providers.
Whereas, a salary certificate letter carries both a specific organization as well as the purpose of the applicant. Therefore, it cannot be used across different institutions, and neither can it be used for purposes that vary from the one that is specified on it.
What is a Payslip or Salary Slip?
A payslip or a salary slip is a note that is issued by a company or employer to the employees when they are paid their salaries. This document usually providers a detailed break-up of the amount that is earned by the employees after the applicable deductions. A salary slip is not given out for any specific reason and it can be used as a means to prove your income if the bank or the financial institution considers it a valid document.
Some banks or financial organizations also provide an alternative option of submitting a carbonized copy of the salary slip instead of submitting the salary certificate.
Salary Slip vs. Salary Certificate: The Difference
Often, a salary certificate UAE is confused with a payslip or a salary slip. A salary slip holds the details of the amount of pay that you receive and the amount of tax or insurance deducted. Whereas, a salary certificate is a document that acts as a proof of your employment and your salary entitlement provided by your employer.
A salary slip is not issued for any specific purpose, whereas, a salary certificate is issued for the purpose of seeking some form of credit.
What Is the Attestation of Salary Certificate?
In UAE most government departments require an attested salary certificate sample for processing various requests such as applying for a loan with a financial institution or a bank, sponsoring your domestic help, among others. Salary certificate UAE is one such document that is required to be attested by the Ministry of Foreign Affairs in Sharjah or Dubai and at the same time by the Consulate General of India in Dubai.
The documents that are required to be carried by the applicant at the time of attestation are:
- The original salary certificate UAE and also a valid photocopy of the same
- The applicant’s original passport and also a valid photocopy of the first and last pages of the same.
Apart from these documents, the applicant is also required to be present there physically during the attestation. Depending on the documents you present, it is possible that you may be also required to present some additional documents. There is also a certain fee associated with this procedure.
Salary Certificate Template
Salary Certificate Template Description: Salary certificate UAE is documented proof of both your - employment & salary entitlement and is issued by your employer. This is useful to apply for a credit card or personal loan in UAE.
Salary Certificate Letter Template
Description: Salary letter is documented proof of your income and employment that is issued by the employer to a particular bank or financial organization and for a specific purpose.
The Bottom Line
Most financial institutions and banks tend to 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.