Issuing Salary Certificate: Guidelines for Drawing and Disbursing Officers(DDOs)

salary certificate guidelines
The Government of Kerala has decided to restrict issuing salary certificates to govt employees. As the debt crisis among employees are found high, the Finance department has issued certain directions with regard to issue of salary and liablity certificates to Drawing and Disbursing officers ( DDOs). It has been mentioned in the GO as per K F C Act, salary certificate including agreement for recovery only be given for the purpose of loan.

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.
Issuing Salary Certificate-Additional guidelines-GO(P) No.65/2023/fin dtd 27-06-2023
Issuing Salary Certificate-Guidelines-GO(P) No.66/2021/fin dtd 26-04-2021
Issuing Salary Certificate-Guidelines-GO(P) No.09/2021/fin dtd 13-01-2021
Related Forms
Form: Salary Certificate
Form: Liability-Non Liability Certificate(LC/NLC) Register
Form: Recovery Register
Form: Confirmation Register

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