How to write a confirmation of monthly salary letter

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Landlords generally check that a prospective tenant can afford monthly rent payments before handing over keys to a property. Banks, building societies and credit companies also need to establish a borrower’s financial position, but do not rely on personal statements.

Today, obtaining a credit reference for an individual is straightforward, although satisfactory history is no guarantee of future on-time payment. A reference letter from an employer is often the most effective means of establishing a person’s particulars of employment, including salary.

Review the request for salary confirmation and check that it is correctly authorised. Retrieve the personnel records for the employee for whom the salary confirmation is required.

Note the required information from the employee’s personnel record. Typically, this will include the following: job title, employment dates, monthly salary, date of last salary review, taxable value of benefits in kind (if any) and pension contributions made by the employee (if any).

Draft your letter in a standard business format before you transfer it to official letterhead. Use a word processor to edit your draft. Address the letter to the person or organisation that requested the salary confirmation.

Use the correct salutation. For example, if the requester’s name is Jane Smith, write "Dear Ms Smith". If no name is given, write "Dear Sir/Madam".

Put the subject of the letter below the salutation. Include the employee’s name. For example, if the employee’s name is John Brown, write "Salary Confirmation -- John Brown".

State in the opening paragraph of the letter that you are writing to confirm the monthly salary for the employee. Confirm that he is employed by your company and in what capacity. For example, if John Brown’s job title is graphic designer, you could write the following: "I am writing to confirm salary details for Mr John Brown who is employed by XYZ Company as a graphic designer".

Confirm the date that the employee started work with the company. A suitable example is as follows: "Mr Brown’s continuous employment with the company commenced on 1 June 2009".

State the salary that you are confirming and the effective date in the body of the letter. Add the amount in words immediately after the figures. For example, if the employee’s monthly salary is £2,000, you might write, "I confirm that Mr Brown’s salary is £2,000 (two thousand pounds) per month, effective from 1 January 2011".

Add details of any benefits in kind received by the employee and any pension contributions that he makes. A suitable statement is as follows: "The company provides Mr Brown with a car and petrol for business use with a taxable value of £650 (six hundred and fifty pounds) per month. Mr Brown contributes 5 per cent of his gross salary into the company pension scheme".

Provide name and contact details of the person in your organisation who will deal with any queries. Give a telephone number or email address. For example, you could say, "I will be pleased to answer any further questions that arise and I can be contacted on 01234 567890".

Sign off the letter. If the requester’s name is given, use “Yours sincerely”, otherwise use “Yours faithfully”. Add your name and job title at the bottom of the letter.

Check the letter for errors. Use the spell checker if your word processor has this feature. Print the letter onto official letterhead and sign it just above the line with your name.