Assistant Manager Human Resources
General Manager, Bio-health Ltd
Modern Laminators Ahmedabad
Recruitment/talent Acquisition, Career Counselling
Accounts & Hr
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Hey, I am Vandana and I m working as HR. I m giving Advance salary to an employee. What type of letter I issue to him? (Receipt)
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Hey, I am Vandana and I m working as HR. I m giving Advance salary to an employee. What type of letter I issue to him? (Receipt)
Hi Vandana!
As per my view, First you need to collect a request form from the employee as Request for Salary in advance.

Then after approval,on the letter head of the company stating employee name,designation,amount of advance approved,re-payment process etc... has to be specified and signed by the Company+employee.(make in 2 copies)
Also few company do demand some security like Educational certificates etc.. If you trust its well and good
I think this must be enough..
Manoj Devda
Accounst and HR Manager
Dear Vandana,
Why u want to issue him letter?
See whenever you are giving any kind of salary advance from your accounts department then it is there duty to deduct the amount from his salary. Only you need to send them an email which stating that salary advance has been approved and deduct the amount from his salary and give him balance amount of his salary.
No need to issue any kind of letter to him.
Dear Vandaana,
You may prepare the Salary advance application forms which contain the following elements
Name of the applicant, designation and department
Purpose of advances
Amount of advance
Surety of advance
Approval of advance
Recovery of advance
Date of drawl of the advance
Number of installment
Last advance taken
This may help you
Hello Vandana,
Pradyumna is right.
You are giving the CLEARANCE to the Accounts Dept to make the payment physically--YOU ARE NOT actually paying the employee. And along with your clearance, you would need to instruct the F&A dept on the mode of repayment, of course after the approvals from your boss or the concerned official.
It's the F&A dept's process to decide the documentation--if the payment is being made thru cheque, maybe it doesn't really matter whether there's a receipt or not, but if it's being made thru cash, then they usually do it thru a Voucher--which should suffice.
If it's felt necessary, Manoj Devda's good suggestion can be implemented--asking the employee to formally give 'in writing' his/her Request for Salary Advance--so that it's on record that the payment was done on 'HIS/HER REQUEST'.
How can you do that without Policy ? As I understand that, there should be a policy and authorization given, including the method of paying, return, amount (how may % of the salary) etc.
Hi Vandana,
We are also providing advance facility to employees in our company. We have prepared a policy for the same stating terms & conditions i.e eligibility, amount, mode of repayment etc. of getting an advance. An employee who meets the eligibility criteria, he needs to submit an advance approval form 15 days in advance to the HR dept. After an approval from his HOD & authorized person from company, he gets advance. Repayment is done as per policy & as agreed by employee also.
Thanks & regards
Asst. Manager- HR
Hello Vandana,
Please see attached the normal 'contract', I make the employee sign. I'm from Mauritius and the agreement has been legally vetted here.
It contains all the terms and conditions. Hope it could be of some use to you.
Thanks and Regards,
Vimal Chokoor
General Manager

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File Type: doc Advance on Salary.doc (42.0 KB, 11371 views)

You can issue a Salary Advance Form to employees who want advance then u can send the data to A/c's Dept. & they can deduct the same from employees Salary.
Here I am attaching te Salary Advance Form for your reference.

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File Type: xls advance salary format.xls (21.0 KB, 7280 views)

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