Salary Certificate Format for a Bank Loan or Visa
A salary certificate with basic, allowances, SSF or PF, CIT, TDS and net pay worked out on the FY 2083/84 slabs, monthly and annual, ready for your letterhead. Print it, or open it in Word.
- Deductions computed, not typed
- BS and AD dates
- PDF or Word
- Nothing leaves your browser
What goes into the figures
- Employee SSF line
- 11% of basic
- Provident fund, outside SSF
- 10% of basic
- Slabs behind the TDS line
- FY 2083/84
- Of the Labour Act requires it
- No section
Who it is for
The employment
The salary
The TDS line is estimated on twelve months of this gross at the FY 2083/84 slabs. Where your payroll shows a different figure, the certificate should carry the payroll's.
SALARY CERTIFICATE
This is to certify that Sujata Shrestha is employed with Your Company Pvt. Ltd. as Senior Accountant in the Finance department, in regular employment, and has been since 1 Shrawan 2079 BS (17 July 2022).
The current monthly salary is set out below. Tax is deducted at source and deposited with the Inland Revenue Department, with the Social Security Fund contribution shown.
| Particulars | Monthly (NPR) | Annual (NPR) |
|---|---|---|
| Basic salary | 60,000 | 720,000 |
| Allowances | 40,000 | 480,000 |
| Gross salary | 100,000 | 1,200,000 |
| Less: SSF, employee contribution (11% of basic) | 6,600 | 79,200 |
| Less: tax deducted at source | 1,007 | 12,084 |
| Net salary | 92,393 | 1,108,716 |
Annual figures are twelve times the month shown.
This certificate is issued at the request of Sujata Shrestha for a loan application and carries no obligation on the part of Your Company Pvt. Ltd.
Check every figure against the payroll before signing. A draft to put on your letterhead, not tax or legal advice.
Usually asked for alongside it
What the Bank or Embassy Asks for Next
- Salary slip format
The recent payslips a bank asks for with the certificate, carrying the same deductions month by month.
- Salary tax calculator
Check a TDS line on a different gross, or compare SSF with PF and CIT, before the figure goes on letterhead.
- Experience letter format
For someone who has left: the certificate Section 150 requires on request, with the service dates in BS and AD.
From Gross Salary to a Signed Certificate
A salary certificate is a payroll extract with a letterhead on it. The figures here are computed the way a Nepali payroll computes them, so the lines add up before anyone at the bank checks them.
- 1
Say who it is for
Address it to the bank branch, the embassy or to whom it may concern, and pick the purpose. The purpose goes into the closing line, which is one of the first things a credit officer reads.
- 2
Enter the employment
Designation, employment type under Section 10(1) and the joining date, in BS or AD. For someone who has left, add the last working day and the certificate switches to the past tense.
- 3
Enter the gross and the basic share
Choose SSF, PF with CIT, or CIT only. Basic, allowances, the contribution lines and the monthly TDS are computed on the FY 2083/84 slabs, and the annual column is twelve times the month.
- 4
Check it against payroll, then sign
Where the payroll's TDS or net pay differs (an arrear, unpaid days, a raise in the middle of the year), the payroll figure wins. Print to PDF or download for Word, then sign and stamp it.
Last updated · Reviewed by Rajendra Regmi, Co-founder
Where Each Figure on the Certificate Comes From
A reader who knows Nepali payroll can check every deduction from the basic salary line. These are the rules the generator applies, from the same module as the salary tax calculator.
| Line | How it is worked out | Rule behind it |
|---|---|---|
| Basic salary | Gross times the basic share you set | The base PF, SSF, CIT and gratuity are computed on |
| Allowances | Gross less basic | Part of gross, outside every contribution base |
| SSF, employee | 11% of basic. The employer's 20% is on top of pay, not deducted from it | Social Security Fund contribution rates |
| Provident fund | 10% of basic, matched by the employer | Labour Act 2074, Section 52(1) |
| Citizen Investment Trust | The elected share of basic, up to 33% | The employee's own election |
| Tax deducted at source | Annual tax on the FY 2083/84 slabs after the retirement deduction, divided by twelve | Deduction capped at the lowest of the contribution, NPR 500,000 or a third of income |
| Net salary | Gross less every deduction above | The amount a bank expects to see credited each month |
Under SSF the 1% social security tax on the first band is waived. Under PF with CIT, or CIT only, it applies, which is why the same gross can show a different TDS line.
What the Reader of a Salary Certificate Checks
No section of the Labour Act 2074 governs a salary certificate, so its content is set by whoever asked for it. These are the checks a bank, an embassy or a landlord runs on one.
A payslip is not a substitute
A payslip is one month's arithmetic. A salary certificate states standing pay on letterhead, signed. Banks often ask for both on purpose: the certificate says what is paid, the payslips and the bank statement show that it was.
Net pay has to match the bank credits
A credit officer lines the certificate up against the salary credits in the applicant's statement. A net figure that never appears in the account is the quickest way to a query, and a gross-only certificate gives the officer nothing to match.
Basic sits on its own line
PF, SSF, CIT and gratuity are all computed on basic, so anyone who knows the rates can check every deduction from that one figure. A certificate that quotes gross alone hides the structure the reader is trying to test.
Employment type and joining date carry weight
An embassy reads regular employment since 2079 very differently from a time-based engagement that ends next spring. Name the Section 10(1) type that applies and the date the employment began, in both calendars.
Issue it from payroll, not the offer letter
Basic moves: Section 36 adds an annual grade for each completed year of service, and festival expense under Section 37 adds 1 month of basic a year on top. A certificate copied from the appointment letter is out of date by the first anniversary.
The signature is a representation
The certificate is a statement to a lender or a consulate in the company's name. A figure raised as a favour is still a false statement, whoever asked for it. Sign only what the payroll record supports.
The Figures on the Certificate Come From Payroll
Generate it here free. On Business and Enterprise, NepalHRM payroll keeps the monthly salary, SSF and TDS records a salary certificate is built from.
- Every pay run keeps each employee's basic, gross, SSF, CIT, tax and net salary for the period, so a certificate can quote the payroll rather than last year's offer letter.
- SSF is deducted at 11% and contributed at 20% of basic on every run, and both lines appear on the payslip.
Salary Certificates in Nepal, Answered
No. The Labour Act 2074 does not mention it, so an employer issues it as a courtesy and the institution asking for it sets the content. The exit document the Act does require is the experience certificate under Section 150, which states the period of service and the post but not the salary.
A payslip covers one pay period: that month's earnings, deductions and net pay. A salary certificate states the employee's standing pay, usually with the joining date and employment type, on letterhead and signed. Banks commonly ask for the certificate and recent payslips together, because one states the salary and the other shows it being paid.
The employee's name, designation, employment type and joining date; basic salary on its own line; allowances to gross; each deduction; net pay; the purpose; and an authorised signature with the company stamp. Many banks have their own format. If yours hands you one, fill theirs with the same figures.
Continuing employment and the means to fund the trip: the employment type, the joining date, the current salary and a signatory the embassy can contact. A leave approval or no-objection letter is usually a separate document, and the embassy's own checklist says which it wants.
Both, with basic shown separately. Net is what the bank compares with the salary credits in the account; gross and basic are what let the reader check the deductions. Quoting gross alone is the most common reason a certificate comes back with a question.
Not in the monthly figure. Festival expense under Section 37 is 1 month of basic a year, paid once, so it belongs on a separate line when the reader wants annual income. The generator adds that line when you tick it.
They can ask, and the employer may issue one for the period worked, in the past tense. It is not obligatory. What Section 150 does make obligatory, on request, is the experience certificate.
The Act names no signatory, so it is the company's choice: usually the head of HR, the head of finance or a director. Banks and embassies sometimes phone to confirm a certificate, so the signatory should be someone who can answer that call.
Guides to the figures on a salary certificate
What a bank checks on one, how the salary is structured, and how the TDS line is worked out.
- Salary Certificate in Nepal: What It Is and Who SignsA salary certificate is not a payslip and the Labour Act never mentions it. What banks and embassies actually check on one, and the eleven lines it needs.
- Salary Structure in Nepal: Basic, Allowance, In-HandWhy the basic figure decides almost everything on a Nepali payslip, what the 60% convention really is, and how gross becomes in-hand pay. With worked numbers.
- TDS on Salary in Nepal: Deduct, Deposit, ReportHow to work out monthly TDS on a Nepali salary: annualise, apply the slabs, divide by twelve. Plus the deposit deadline and what the employer owes if it skips it.
- CIT vs PF vs SSF: Which Saves You More TaxPF, CIT and SSF all reduce taxable income, but only to a point. What each one costs, what the NPR 500,000 ceiling does, and which combination actually leaves more.
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Payroll That Already Holds the Figures
On Business and Enterprise, NepalHRM payroll calculates SSF, PF, CIT and TDS for every employee each month, so the salary on a certificate is read off the record rather than retyped.
- Payroll on Business and Enterprise
- SSF, PF, CIT and TDS each month
- BS fiscal year
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