How To Write a Salary Verification Letter (With Example)

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A salary verification letter, otherwise known as an employment verification letter, is a letter confirming an employee's income. Employees usually need this type of letter to show their current salaries for loans or leases. Learning how to properly write a salary verification letter can ensure you provide the necessary information for employees' needs.

In this article, we define what a salary verification letter is, explain what they're used for, provide a template for writing your own and go over a few examples of different salary verification letters for reference.

What is a salary verification letter?

A salary verification letter is an official, signed letter from a business that states an employee's employment history and income. This type of letter states general employment information about a person, such as the name of the company they work for, their name, job title or position, income, the status of their job (full time or part time) and any additional compensation they may receive in their role.

The following people may write salary verification letters:

• Human resources manager

• Partner or co-owner

• Director

• Department manager

• President

• Supervisor

Related: What To Expect From a Pre-Employment Screening

What is a salary verification letter used for?

A salary verification letter is used to provide evidence for any income and employment claims that a person makes. Here are some common instances when employees need salary verification letters:

• Purchasing a house

• Signing a leasing agreement for a house or apartment

• Requesting a loan

• Purchasing or leasing a car

• Applying for a credit line

Related: How To Get a Pay Stub

How to write a salary verification letter

Here are the steps you can follow to write a salary verification letter:

1. Use official company stationery or letterhead

It's common to use company-branded stationary or letterhead for a verification letter. Company stationery typically has the business name, address and contact information printed on it already. If the party requesting the letter needs any specific information on the letterhead, ensure you include it.

2. Create a header and salutation

At the top left of your letter, add a standard business header. Start with your company's name, the business address, your name and job title and phone number. Add the date on its own line, then include the recipient's contact information.

Below your header, address the recipient directly. You can use their full name if you know it, or you can use a formal business salutation, like "To whom it may concern."

3. Give your reason for writing

The first paragraph of your salary verification letter should state your reason for writing the letter. You may include the employee's name, job title and start date. It's helpful to be as straightforward as possible so the recipient can easily find the information they need.

4. State employee's salary

This part of the employee verification letter confirms any salary and employment claims that the employee made. Include the compensation type, such as annually or hourly. You may also state any additional compensation, like bonuses or commissions, in this portion of the letter.

5. Conclude your letter

In the conclusion of your salary verification letter, offer your direct contact information so that the recipient can contact you if they need additional information or clarification. You can also include the best time to reach you if you're usually busy during certain periods. Conclude your letter with a formal closing, such as "Sincerely." After that, include a space where you can add your signature, then type your name, title and company name below.

Related: How To Request an Employment Verification Letter

Salary verification letter template

You can use this salary verification letter template as a guide to write your own:

[Company name]
[Company address]
[Name, job title]
[Company phone number]

[Date]

[Name of recipient]
[Recipient company address]

Dear [Name],

[Explain reason for writing letter and state employee's name.] [State necessary information, such as employee position title and length of time employed at company.]

[Provide details of employee's salary and any additional compensation.]

[Offer contact information in case recipient needs additional information or clarity on contents of letter.]

Best,

[Your name]
[Your job title]
[Company name]

Related: How To Create a Template For Employment Verification

Salary verification letter examples

Here are two examples of verification letters for current and future employees:

Current employee example

Dexter Insurance Company
Dexter, Michigan
Pete Johnson, partner
555-293-9810

August 27, 2021

Little Michigan Leasing Agency
Ann Arbor, Michigan

To whom it may concern,

I am writing this letter to confirm that Edward Smith has been employed with Dexter Insurance Company since April 10, 2012 and is a reliable and trustworthy insurance agent for this company.

Currently, Edward's annual salary is $50,000. For the last six months, he has also earned a monthly commission of approximately $600. The company expects him to continue making this amount in commissions over the next six months.

Please reach out to me with any further questions about Edward's employment at 555-293-9810 or Pete.Johnson@DexterInsuranceCo.com

Best,

Pete Johnson
Partner
Dexter Insurance Company

Related: How To Write an Employment Verification Letter (With Samples)

Future employee example

Smith and White Insurance Company
555-896-3420
Ann Arbor, Michigan
Isabel Reyes-Smith, HR manager

August 27, 2021

Ann Arbor Used Cars and More
Ann Arbor, Michigan

To whom it may concern,

Please accept this letter as verification of Patricia McDaniels' future employment with Smith and White Insurance Company, beginning on October 1, 2021.

Patricia will be working for the company on a part-time basis as a front desk receptionist and administrative assistant for $13 per hour. At this time, she is expected to receive a $1,000 bonus at the end of the year as her portion of the company's profit-sharing program.

Please don't hesitate to contact me with further questions regarding Patricia's future employment. You can reach me by email at IsabelRS@smithandwhiteinsurance.com.

Best,

Isabel Reyes-Smith
HR manager
Smith and White Insurance Company

Related: 13 Types of Employment Letters and When To Use Them

Tips for writing a salary verification letter

Here are some tips for writing a salary verification letter:

• Be as concise as possible. Including just the necessary details ensures the recipient can quickly find and confirm the information they need. Since multiple people may need to read the letter, being straightforward can help the review process move smoothly.

• Give additional contact information. It can be helpful for the recipient to have multiple ways to contact you should they need additional information or clarification. In addition to your phone number or email, you could include the general company phone number so the recipient can talk to someone else if you're unavailable.

• Send it in a timely manner: In some cases, such as a loan application, the lender may need salary verification by a certain period. It's helpful to ask the employee if there's a deadline or time frame in which you need to send the letter.