Whenever someone attempts to buy a new car or home or make any other large purchase, it’s not uncommon for them to be required to verify their income and employment status. When a bank approves a personal loan, they’ll need more than polite assurances to confirm that someone makes X dollars annually.
That’s where a salary verification letter comes into play. It’s a document created by someone’s current or future employer for several reasons.
What Is a Salary Verification Letter?
Also commonly referred to as an employment verification letter, a salary verification letter is a document that confirms an employee’s income. If an employee needs to verify their income for a loan, a bank isn’t just going to take their word for it that they make what they claim. Putting that information in writing through a salary verification letter helps confirm those details.
What Is a Salary Verification Letter Used For?
Generally speaking, a salary verification letter is used for purposes like:
- Verifying an employee’s income for the purposes of a new car lease or loan.
- Verifying income for the purposes of a mortgage application.
- Verifying income if required by an employee’s landlord for housing rental purposes.
How to Write a Salary Verification Letter
When putting together a salary verification letter of your own, you’ll want to include several key sections.
Step 1 – Relevant Contact Information
First, you’ll want to ensure that all contact information for both parties is included in its section at the top of the letter. This consists of the sender’s name, title, company, and company address, along with the date. You’ll also want to include the recipient’s name and address for formality.
Once everything is concluded at the end of the document, you’ll also want to include the sender’s name, job title, company name, phone number, and email address so that the recipient has all this information should they need to make contact moving forward.
Step 2 – Getting Into the Details
The brunt of the salary verification letter will be the details about their current status with your company. Here, you’ll include bullet points containing information like:
- Whether the job is full-time, part-time, temporary, contract, etc.
- The projected hire date of the employee (if applicable).
- What their official job title will be.
- Their annual salary.
- Any overtime pay rates and eligibility, if applicable.
- Any additional compensation details like bonuses, commission, or anything else that may be relevant.
Step 3 – Finalizing the Letter
A closing paragraph or two is also an opportunity to note that everything in the letter is contingent on the employee remaining in good standing. The letter itself does not guarantee continued employment or salary, and all factors are subject to change at your business’s discretion at any time.
Salary Verification Letter Example
Below, you can see an example of a filled salary verification letter:
Salary Verification Letter Sample
Download a salary verification letter template below in PDF or Word format: