Why is the salary verification letter needed ?
A salary verification letter is a vital document provided by the current or former employer as a response to a potential employer, government agency, bank or various lending agencies that may require details of a person’s financial status. The most common use of this letter is to explain the employment status and salary growth of an individual.
Importance of a Salary Verification Letter
As a manager in the current business world, it’s crucial to have the techniques to write a salary verification letter for the employees when requested. An employee can seek this letter when intending to get a loan from a bank, or when purchasing a house or a car from lending agencies, hence the income verification form is essential. A salary verification letter aims to prove that a person works for a particular organization. It also provides information on the employee’s salary growth and current income. An individual may also require this letter while trying to prove to a potential employer their current employment status.
What a Salary Verification Letter Entails
This important document must be prepared using company stationery, which include a letterhead, the company logo, phone number, and a web address at the end of the document. The content of the letter should consist of the name of the employee, the company’s name, job title, and the employment start date. It also must describe the salary amount and if there are any bonuses to the benefit of the employee. This document should also explain the employee’s principal responsibilities in the organization and express your readiness to provide more information if requested. After provision of the stated data, the company’s manager or human resource officer then signs the letter.
However, an employee may also write a letter themselves using our template and then request their employer to sign and stamp it.