Salary Certificate Components
I am going to issue a Salary Certificate to one of our employees for the last financial year. Please confirm whether the Salary Certificate should contain only the components mentioned in the Pay Slip or if it should also include Bonus, Leave Encashment, etc.
Waiting for your valued response.
Regards,
Subrata Singha
From India, Calcutta
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5I am going to issue a Salary Certificate to one of our employees for the last financial year. Please confirm whether the Salary Certificate should contain only the components mentioned in the Pay Slip or if it should also include Bonus, Leave Encashment, etc.
Waiting for your valued response.
Regards,
Subrata Singha
From India, Calcutta
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Hi Anonymous, Salary component which we include in salary slip will work. No need to mention bonus or leave encashment or anything else. Regards, Shreya Parikh (HR)
From India, Pune
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From India, Pune
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Well, you can go with both options as per your choice, but my point is what will be the difference in the salary certificate if it is the same as the payslip. So, it's better if you mention all the amounts credited to the employee's account. First, you should mention the salary and deductions as mentioned in the payslip, and below you can mention the bonus, incentives, leave encashment, etc.
From India, Lucknow
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From India, Lucknow
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Leave encashment is not a regular payout. You can capture only the regular payouts in the salary certificate. Pon
From India, Lucknow
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From India, Lucknow
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A salary certificate will only include the base salary/CTC. Any other components apart from CTC, such as bonus, incentives, gratuity, overtime, etc., will not be a part of the salary certificate.
From India, Bangalore
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From India, Bangalore
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The components to be reflected in the annual statement that you are to issue depend upon the purpose for which it is being issued. If it is being issued for a loan purpose (please make a mention of the purpose always at the end of the certificate), you should include the regular components of salary payable, regular/statutory deductions, and Net/Take-home salary details. If it is being issued for Income Tax purposes, i.e., in the form of Form-16, you need to include all the payments made, including Bonus, Leave Encashment, incentives paid in cash - if any, etc. This will also include the TDS during the financial year in question.
Best Wishes.
Regards,
AK Jain HR Personnel NCL, CIL
From India, New+Delhi
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Best Wishes.
Regards,
AK Jain HR Personnel NCL, CIL
From India, New+Delhi
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SALARY CERTIFICATE- MINISTRY OF FINANCE's Notification on formats.docx