If the employees take up loans beyond their repayment capacity, the DDOs are advised not to issue salary certificate to them. Employee's monthly loan or chit-fund instalment should not exceed the person's net salary. The department should not issue salary certificates to avail of new loans in such cases. No salary slip will be issued to those who have payment recovery from their salary and to those who have received a stop memo for temporary suspension of loan recovery.
Moreover, salary certificates will not be issued if the loan or chit repayment term exceeds the service period of the employee. Also, employees working under contract basis are not eligible to receive salary certificates. However, if the loan is not determined by net salary, the employment certificates shall be granted to them. It is applicable to part time contigent employees and teachers.
Salary certificates can be demanded for loan amount that of 75 times of the basic salary or maximum 3 crores and whichever is less, that amount will be considered.
The DDOs should maintain Registers while issue salary/liability certificate. In the case of transfer of employees, along with Last Pay Certificate (LPC), the loan details also should be sent to the office.
Click the link below to download Salary certificate, Confirmation certificate form, LC/NLC Reg, Form of Recovery and GOs regarding this.
