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Compensation

Compensation documents

Anything that states or revises what an employee is paid. Salary documents get read closely by banks, landlords, and visa offices as well as by the employee, so internal consistency between the figures matters more here than anywhere else.

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Telling these documents apart

What's the difference between a salary certificate and a salary breakup sheet?

A salary certificate is a confirmation letter, usually written for a third party — a bank, landlord, or visa office — stating what someone earns. A salary breakup sheet is a structure table showing how a total figure splits into basic, allowances, and deductions, usually for the employee's own reference or for use inside an offer or appointment letter.

When do I issue an increment letter instead of a new offer letter?

An increment letter communicates a revised figure and its effective date for someone already employed under existing terms — it amends compensation, not the whole employment relationship. A new offer letter is only appropriate when someone is being offered a genuinely new role.

Do the figures across these documents need to match each other?

Yes — this is the most common source of avoidable errors in compensation paperwork. A salary certificate that doesn't reconcile with its own breakup sheet, or an increment letter with a start date earlier than the offer letter's, is exactly the kind of inconsistency a bank or auditor will flag.

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