Letter to Inform Employee of Salary Decrease

Sample letter to notify the employee about decrease in monthly salary. Many times companies decide to decrease or cutoff the employee salary due to recession, losses, lower profits from the company side. Companies also cutoff employee salaries due to weak performance, no target achievements etc.

Letter of Salary Decrease to Employee

North Carolina,

Respected Employee,

It is to inform you that your salary will be reduced from the next month of October due to the economic recession which has hit the market this year. It was lucky of you that you did not lose your job due to that as the Company has decided to reduce the salaries of the employees to an extent and not fire them.

We expect our employees to support us in our decision. Your salary will soon be increased as soon as the recession is over and the prices go up, so it is a temporary decision by the company.


Pepsi Co. Intl.,

Employee of Salary Decrease Letter

Dear smith

It is intimated that our company hired your services 6 months ago on monthly package of 3,000 pounds. And you also know that we have been paying you regularly without any interruption. Now the situation which I am going to reveal is that our company is running in loss since last two months. The managing director chaired the meeting of Board of directors held in the office today and taken several decisions to make the company profitable again.

Out of those decisions one was to decrease the salary of the employees to an extent of 10 percent. Hence I have been directed to convey this decision to the effected employees. It is expected that by implementation of board’s recommendations and steps the company will soon regain its previous profitable position. It has also been decided that all the employees who’s salary has been cut will again be started to get their original payments as before. It’s expected that you will not let your morale down and keep working with the same devotion and motivation and help your company get its prestige again.

Yours sincerely,


Letter to Inform Employee of Salary Decrease

Rose Petal & Co.,

Respected Employee,

With respect, it is to inform you that due to the economic recession this year which has hit very hard to the market, the company had to terminate the jobs of many of the employees. But you are among the lucky ones to be saved but it certainly has affected company’s salary paying power and due to that reason your pay has been decreased.

We are sorry for such inconvenience and hardship but whenever the company will come back to its previous position the company will pay you back your salary on the same terms as before.


Gordon Brown,
CEO Rose Petal & Co

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