Everything You Need to Know About Salary Certificate UAE

What is a Salary Certificate in UAE?

A salary certificate in UAE is a documented proof of your employment and salary entitlement provided by your employer. This document usually holds details about your employment with the company and is issued 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 organization.

A salary certificate in UAE is a compulsory document if you are applying for a credit card or personal loan in the UAE. It confirms your salary and employment, ensuring it's printed on official letterhead, signed by an authorized signatory, and carries the organization’s stamp.

Why Do Banks Ask For a Salary Certificate in UAE?

When you approach a financial institution or a bank for a credit card, personal loan, car loan, or any other kind of loan, they need to determine your ability to repay the loan. This is done by assessing your savings via your bank statement and your monthly income via your salary certificate. This helps the institution ensure they are lending funds to an individual with a steady income and the potential to repay the debt.

A salary certificate acts as a verification of your position in the organization and your earnings. This information is crucial for the institution or bank to decide on your creditworthiness.

Read more: Effective Strategies for Payroll Management in Businesses.

What Is The Need for a Salary Certificate While Applying For a Loan or Credit Card in UAE?

Most 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 loan, the documents required by banks or financial institutions may vary, but the general requirements are:

• Valid Passport
• Valid Visa
• Latest salary certificate or payslip/salary slip
• Recent bank statements

Most institutions will not process your credit card or loan application without a salary certificate, making this document essential in the application process. Key points of a salary certificate include:

1. Date of issue
2. Employee's name and gender
3. Position and job designation
4. Joining date
5. Gross and net salary amounts
6. Allowances and benefits (if any)
7. Name, contact details, and address of the authorized signatory

What Is The Use Of a 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.

You might also read: Effortless Accounting Software Training in UAE with Wafeq. Top 8 Accounting Software Solutions in the UAE.

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 applying to ABC Bank for a personal loan, the salary certificate letter will be addressed only to “ABC Bank” to seek a personal loan. You cannot use this document for submission to any other institution or 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 your current employer issues. This document is not issued to any specific organization and neither does it have a purpose specified on it. This means you can use it for different purposes and 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, nor can it be used for purposes that vary from the one specified on it.

What Is the Attestation of Salary Certificate?

In UAE, most government departments require an attested salary certificate for processing various requests such as applying for a loan with a financial institution or a bank, or sponsoring your domestic help, among others. The 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 a valid photocopy of the same

The applicant’s original passport and a valid photocopy of the first and last pages of the same

Apart from these documents, the applicant is also required to be present physically during the attestation. Depending on the documents you present, you may also be required to present some additional documents. There is also a certain fee associated with this procedure.

Salary Certificate Template

A typical salary certificate template includes the following details:

• Date of issue
• Employee's name and gender
• Position held in the organization
• Job designation
• Joining date
• Gross and net salary amounts
• Allowances and benefits (if any)
• Name, contact details, and address of the authorized signatory



Why is a Salary Certificate Needed?

A salary certificate might be required for various purposes, including:

1. Opening a bank account for salary deposits
2. Confirming employment in a company in the UAE
3. Obtaining a sponsorship visa for family members
4. Receiving a discount on driving school tuition
5. Applying for a loan
6. Procedure for Obtaining a Salary Certificate in the UAE

The procedure for obtaining a salary certificate is straightforward. Essentially, from the employee’s side, only one action is required: requesting the salary certificate from the employer.

From the employer’s side, there are a few more steps involved. The employer contacts the free zone where the company is registered to issue the salary certificate (if the company is registered in a free zone. The process is slightly different for local companies).

Timeframe for Obtaining a Salary Certificate

The timeframe for obtaining a salary certificate in the UAE varies from 3 to 5 working days from the date of the request. When sending a request for the issuance of the salary certificate, the free zone (if the company is registered in a free zone) may inquire about the reason for needing the certificate. This may slightly delay the issuance.

However, typically, the issuance of the salary certificate is very quick and straightforward.

Final Thoughts on Salary Certificates

Having a salary certificate in the UAE is much more than a mere piece of paper. It’s your financial persona on official letterhead, a key that unlocks doors to loans, visas, and more. Make sure to request yours with time to spare and follow through with necessary attestations to ensure its credibility beyond borders.

With digital advancements, acquiring and attesting your salary certificate has never been simpler, allowing you to focus on what matters most—your career and life in the UAE. Remember, this document doesn’t just reflect your income; it represents your financial reliability and professional standing. So, safeguard it, update it, and present it with confidence whenever your next big step beckons.