A UAE salary certificate is an important document issued by an employer which proves an employee’s job, income, and other details. The document holds details about an individual’s employment with the company. The employer issues the document on the company’s letterhead with the signature and seal of an authorised personnel. It details total earnings, salary, employment dates and a formal proof for various applications in the UAE.
A salary certificate in the UAE is an essential document if you are applying for a personal loan or credit card in the UAE. It provides assurance about an individual’s financial standing to government authorities, banks and landlords. If you are working in the UAE, understanding the details of the UAE salary certificate is crucial. Let us look at the importance of a salary certificate and how to obtain it.
What is a UAE Salary Certificate?
A salary certificate in UAE is an official document issued by the employer as a proof of an employee’s income, job position and employment status. It is a detailed breakdown of employee’s salary, which includes basic salary, allowances, net salary and deductions.
Generally the certificate is printed on the letterhead of the company with an authorised person’s sign and stamp. The certificate is valid for a specific period, usually three months.
The salary certificate generally includes the following:
- Job title and employee’s name
- Date of employment
- Base salary
- Net salary
- Allowances (transportation, housing etc.)
- Deductions (social security, taxes etc.)
- The issuing authority (HR department) and their contract information.
Note that the salary slip is a monthly record of an employee’s salary, while a salary certificate includes broader details of employment status and income.
Why do Banks Require a UAE Salary Certificate?
When an individual approaches a bank or a financial institution for a personal loan, credit card or any other loan, they need proof that the individual is able to repay the loans. Hence, a salary certificate provides complete income details and allows banks to assess your savings and monthly income. The certificate provides surety to institutions that they are lending loans to an individual who has a steady income and is able to repay his debts on time.
A salary certificate is proof of your position in the company and your earnings. The details are crucial for the bank or institution to decide on the trustworthiness of the individual applying for a loan.
Why is a UAE Salary Certificate Required While Applying for a Credit Card or Loan?
Most UAE banks require a salary certificate as a mandatory document while applying for any kind of loan or credit card. Depending on the type of loan or credit card, the general requirements include:
- Valid visa
- Valid passport
- Recent bank statements
- Latest salary certificate or salary slip
Most financial institutions do not process your loan or credit card if the salary certificate is not provided with other documents. Here are the key points of a salary certificate in the UAE:
- Date of issue
- Employee’s name and gender
- Joining date
- Job designation and position
- Allowances and other benefits
- Gross and net income
- Name, address and contact details of the company’s authorised signatory.
What is the Use of a UAE Salary Certificate for an Employee?
A salary certificate is an essential document for employees who are applying for any kind of loan. Submitting this certificate is generally mandatory as it confirms that the employee is able to repay the loan he applied for. Therefore, it is mandatory for employers to issue such a certificate if employees ask for it.
What is a Salary Letter?
A salary certificate letter includes an added section to a particular bank or financial institution stating the reason behind the issuance of the certificate. The document can only be used for the specified reason on it while applying for the letter.
For example, if an applicant is applying to XYZ bank to get a personal loan, the salary letter will be addressed to XYZ Bank to get a personal loan. You can not use the document for submission to any other institution or any other purpose.
Difference Between UAE Salary Certificate and Salary Letter
A salary certificate is a proof of income as well as allowances which an employer issues to the employee. This document is not addressed to any specific institution nor does it mention any purpose. Hence, a salary certificate is used for various purposes and to different providers.
While a salary certificate letter mentions both the purpose of the applicant as well as a specific organisation. Hence, you can not use it across various organisations nor can it be used for purposes other than the one mentioned on it.
What is the Attestation of a UAE Salary Certificate?
Most of the UAE government institutions require an attested salary certificate for applying for a loan with a bank, or sponsoring your domestic workers and for other reasons. The Ministry of Foreign Affairs in Dubai or Sharjah attests the UAE salary certificate.
Documents Required at the Time of Attestation
- Original salary certificate and one photocopy of the same.
- Applicants’ passport and its photocopies.
Additionally, the applicant must do the Attestation physically and you may need to submit additional documents. The process also includes a certain fee.
Salary Certificate Template
Generally, a salary certificate template includes the following details:
- Date of issue
- Employee’s name and gender
- Job designation
- Joining date
- Position in the company
- Gross and net income
- Allowances
- Name, contact information and address of the authorised signatory.
Timeframe for Obtaining a UAE Salary Certificate
The timeframe for getting a UAE salary certificate is between 3-5 working days after putting in a request. The delay may happen because the free zone may inquire about the reason for requiring a certificate which may delay the issuance.
Other than that, the issuance of a salary certificate is quick and easy.
Example of UAE Salary Certificate
[Company Letterhead with Logo]
[Company Name]
[Company Address]
[City, UAE]
[Contact Information]
To Whom It May Concern
This is to clarify that [Employee full name], holder of Emirates ID [ID Number], is currently working with [Company Name] as a [Job Title]. The details of their salary and employment are as follows:
- Employee Name: [Full Name]
- Employee ID (if applicable): [Employee ID Number]
- Designation: [Job Title]
- Date of Joining: [DD/MM/YYYY]
- Monthly Salary Breakdown
- Basic Salary: AED [Amount]
- Housing Allowance: AED [Amount]
- Transportation allowance: AED [Amount]
- Other Allowances: AED [Amount]
- Total Monthly Salary: AED [Amount]
This salary certificate is issued with the employee’s request (specific purpose).
If you require further information, please contact us at [Contact Number/Email Address]
Yours sincerely,
[Authorised Signatory’s Name]
[Designation of the Authorised Signatory]
[Company Name]
[Company Stamp]
Final Thoughts
A UAE salary certificate is a document for financial and legal processes and acts as a proof of your income and employment status. It is an official letterhead that is needed when applying for a loan, meeting government requirements, sponsoring a visa and more. By following this guide you can understand all necessary steps, from submission of documents and its validity for local and international purposes.
With digital transformation, getting your certificate and its attestation becomes simpler allowing you to focus on your career in the UAE. Remember, the certificate not only reflects your income, but your financial reliability and professional status. Hence, it is important to safeguard it, update it and present it when needed. Contact Al Riyady for further information!
