A salary reduction is when a set amount is cut or reduced by the company when it faces a certain crisis or has liabilities. In such cases, the company discusses, with their employees, in the form of letters, agreements, or notices in order to get their consent.
Furthermore, many companies are facing difficult challenges of maintaining financial stability amid the global pandemic.
Here is a Notice for Salary Reduction template you can use to send out to your employees.
Subject: Notice for salary reduction.
Template
Dear [Employee_Name],
Due to the Covid-19 Pandemic, [Company Name] is facing some financial difficulties that we are trying to overcome. We are here to inform you that the company has taken the action of reducing your pay[temporarily/permanently].
Effective from [Date], your salary amount will be reduced/cut from [current pay] to [new pay].
To see a better future in the near and far times, the company is continuing to work on solutions towards our financial problems.
Until a solution is found, the company is obliged to take measures regarding salaries.
We appreciate your understanding and cooperation.
Thank you.
Regards,
[ Employee Name]
[Designation]
