Salary Verification Letter

What is a salary verification letter?

A Salary Verification Letter is used to verify both the employment history and the salary and other compensation received by an employee. This letter can be drafted either by an employer or an employee, who then delivers the letter to their employer to sign and send. An employee might need a Salary Verification Letter in the following circumstances:

• Applying for a new job
• Renting an apartment
• Requesting a loan, mortgage, or credit from a bank

In some cases, a potential employer may request a salary verification letter from the current employer of an employee to confirm that the employee worked for the employer for the salary stated in their application or resume. An employee can use this letter as proof of representations made in their resume. A salary verification letter may also be used to secure a loan, mortgage, or credit line from a financial institution as it serves as a proof of their ability to repay.

Is it mandatory to have a salary verification letter?

No, in most circumstances, it is not mandatory to have a salary verification letter. However, there are times when an employee may need to get a salary verification letter. For example, they may be required by a bank to use this if they are applying for a loan or mortgage.

What must a salary verification letter include?

A valid salary verification letter must contain at least the following mandatory clauses:

• Identifying information: The salary verification letter includes the name and contact information of both the employee and the employer. The letter also includes the name and address of the person or organization that will be receiving the letter.
• Purpose: The salary verification letter specifies the reason the letter is being written, whether it is because the employee is applying for a new job, trying to get a loan, putting in an application to rent an apartment, or some other purpose.
• Employment description: The salary verification letter outlines details of the employee's time with the employer, such as the name of their position and when they began working for the employer.
• Salary: The salary verification letter states the employee's salary. This can also include information about any bonuses the employee receives.
  
  

Who is involved in a salary verification letter?

The salary verification letter is usually written by the employer and then used by the employee for their own purposes. It is also possible for the employee to write the letter themselves and then give it to the employer for them to review. Once the employer reviews it, they can then sign it to authorize that the information included is true and accurate.

The person requesting the letter must be officially employed under an employment agreement. Contractors, freelancers, and others who do not have an employment relationship with an employer may not request this kind of letter.

What should be done once the salary verification letter is finished?

When the salary verification letter is written and all the relevant information has been included, the letter should be printed on official company letterhead, reviewed, and signed by the employer. The employer can then give it to the employee to send, or send it themselves to the intended recipient. The employee may also keep additional copies of the document for their records and for future use.

What laws are applicable to salary verification letters?

There are no relevant laws in the United States regarding salary verification letters. This is an informal letter provided to an employee by their employer as a courtesy.

How to modify the template?

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.