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Salary Confirmation Letter for the United Kingdom

Salary Confirmation Letter Template for England and Wales

A Salary Confirmation Letter is a formal document issued under English and Welsh law that confirms an employee's current or new salary arrangements. It serves as an official record of compensation terms, including the gross annual salary, payment frequency, and any associated benefits or conditions. The document must comply with UK employment legislation, including the Employment Rights Act 1996 and relevant tax regulations.

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What is a Salary Confirmation Letter?

A Salary Confirmation Letter is commonly used when formalizing new employment arrangements, implementing salary changes, or providing official documentation for third parties such as mortgage lenders or visa authorities. The letter serves as written evidence of compensation terms and forms part of the employment record. Under English and Welsh law, this document should align with statutory requirements for written particulars of employment and must accurately reflect agreed terms. The letter typically includes specific salary figures, payment schedules, and may reference related benefits or conditions of employment.

What sections should be included in a Salary Confirmation Letter?

1. Company Details Header: Official company letterhead, name, address, and registration information

2. Date and Reference: Current date and any reference numbers

3. Employee Details: Full name and address of the employee

4. Salary Confirmation: Clear statement of annual gross salary and effective date

5. Payment Details: Payment frequency, method, and timing of payments

6. Closing: Signature block and company representative details

What sections are optional to include in a Salary Confirmation Letter?

1. Bonus Information: Details of any bonus schemes or variable compensation, included when applicable

2. Salary Review Information: Next scheduled salary review date and process, included if regular reviews are policy

3. Deductions Summary: Overview of any non-standard deductions, included if applicable

4. Benefits Summary: Overview of associated benefits package, included if benefits are changing or need confirmation

What schedules should be included in a Salary Confirmation Letter?

1. Benefits Schedule: Detailed breakdown of the complete employee benefits package

2. Bonus Scheme Details: Full terms and conditions of any applicable bonus schemes

3. Acknowledgment Form: Form for employee to sign and return confirming receipt of salary confirmation

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Employment Form

Cost

Free to use
Relevant legal definitions














Clauses













Industries

Employment Rights Act 1996: Key legislation covering written particulars of employment, requirements for payment of wages, and protection from unauthorized deductions

National Minimum Wage Act 1998: Legislation ensuring the salary meets minimum legal requirements and age-related wage requirements, including National Living Wage regulations

Equality Act 2010: Legislation covering prevention of discriminatory pay practices and equal pay provisions

Income Tax Act 2007: Legislation governing tax implications, declarations, and PAYE regulations for salary treatment

National Insurance Contributions Act 2014: Legislation covering NI contribution requirements and employer/employee obligations

Working Time Regulations 1998: Regulations concerning working hours and holiday pay calculations in relation to salary

GDPR and Data Protection Act 2018: Legislation governing the processing of personal and financial information and data protection requirements

Pensions Act 2008: Legislation covering auto-enrollment implications and pension-related salary deductions

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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