A salary confirmation letter is the document an employee needs in order to prove his current income. It can be written by the employer, as well as by the employee - and firmed by the employer - and it is usually needed in the following situations:
- a bank loan
- a house renting
- a rate needed for making a big purchase
- a mortgage
- an insurance
- a social security casework
In all of the cases stated above, the institution that asks for such a document needs this salary verification letter in order to be sure that the person that is making the contract with is capable of accomplishing the financial obligation.
Apart from these, there are also the circumstances when people need this proof of income in order to apply for state benefits. In this instance, the Government is paying money for people living in certain circumstances that don’t meet a decent standard of living.
What needs to include a salary confirmation letter
Here are the main points you will need to cover when writing this type of confirmation letter.
- the date
- the company’s contact details
- the employee’s name
- his job title
- the employment starting date
- the employment ending date (if the the person doesn’t work there anymore)
- his basic salary
- the deduction
- medical, entertainment, travelling, vehicle, telephone allowances (if needed)
How to write a salary confirmation letter
The salary verification letter may be written by the individual who needs it and signed by the company, as well as be written by the company itself (depending on the will of the institution it is addressed). Either way, the following is a standard structure for any salary confirmation letter:
- Mention the contact details right at the beginning, writing them at the left top of the page.
- Start the salary verification letter with a standard form of address: To Mr. Jameson…, Dear Mr. Jameson…, To whom may concern...
- Introduce yourself and mention the purpose of the letter.
- Provide the basic information about your salary, alongside to any other details concerned - for how long does the employee works for the company, for how long does he have the mentioned salary, the position he occupies. If you are the employee who is writing the letter, you can also mention for how long do you forecast to be able to maintain this income.
- Also, if you are the employee, you could mention other sources of income if you have some. For example, if you work extra as a freelancer and you are paid for, if you receive any pension, government benefits etc.
- Use the last paragraph for thanking the receiver for their time and assure him about the truthfulness and the correctness of the information stated above.
- Enclose your letter with a common Sincerely… or Best wishes… as any other formal letter.
This type of confirmation letter is also known as an income verification letter or a proof of income letter. If you need a model in order to write your own, check our salary confirmation letter sample.
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