Salary Reduction Revised Letter Template

Hi All,

Our Management decided for salary reduction for senior employees, so need to prepare revised letter with salary reduction. requesting that any one of you please do share me template.

Thanks in advance…



Hi @Purushotham

Here are the different items you should include in your salary reduction letter:

  1. Boilerplate letter formatting: date, subject, greetings, and a signature from your CEO.
  2. An explanation of why your organization is facing financial hardships, such as the economy, or an industry disruption.
  3. An explanation of all of the cost reduction methods you have reviewed before deciding on this one.
  4. Notification of the salary reduction, instructions on what percentage your employees’ salaries will be reduced, and when the change will occur. (Include this for both hourly and salaried employees.)
  5. A timeline of when this policy will be reviewed and what the expectations are for the reduction.
  6. Show appreciation for your employees hard work, dedication, and continued loyalty to your organization.
  7. Offer a resource for the employees to use if they have further questions, such as your Human Resources department.

Throughout the letter it is important to have a friendly tone, but to also be honest about the situation. This is the most respectful way to treat your employees.

And as always, before you send the letter make sure to have your legal team look over it to ensure compliance with any laws that pertain to your location and industry.

Here is a template I found in online that might be of some reference to frame the letter as per the Org. needs

Salary Reduction Letter Template.doc (33 KB)