Letter of Salary Deduction due to Negligence

Working as an employee in the company requires you to be vigilant so that you can perform your duties well. However, someone can’t stay vigilant all the time. Some people show negligence deliberately while doing it unintentionally. No matter what kind of negligence it is, it is always perilous for an organization to have negligent employees. To deal with such a situation, the employers have different policies and strategies including written or verbal warning, deduction from the salary, cancellation of the promotion, and much more. 

What kind of punishment an employee deserves depends on the size of negligence! Some employees define that under what conditions, the employee will have to contend with the salary deduction. 

What is a letter of salary deduction due to negligence?

An employer or managing director writes this letter to his employee when he shows any kind of negligence. The purpose of writing this letter is to let the employee know that his salary is being deducted because he didn’t perform up to the mark and has shown negligence. 

What is the purpose of the salary deduction letter?

Sometimes, the employee doesn’t know why his salary has been deducted. So, when he finds out that the company has deducted his salary, he wants to know the reason behind this act. So, when he receives this letter, he gets clear about it.

Another objective of the organization behind this letter is to correct the employee. Some people don’t start working seriously unless they have to face the penalty. The penalty in the form of salary deduction often makes the employee realize that he should work seriously now to avoid a financial crisis that he might face due to a significant amount of deduction.

When to write the salary deduction letter due to negligence:

We all know that sheer negligence of the employee in an organization is never acceptable. So, the employer decides to deduct the salary of the employee. This happens in many situations. 

For example, if the company goes through financial loss because of the carelessness of the employee, it has to make up for the loss. In that situation, the salary of the employee can be deducted. 

If an employee doesn’t show up without informing and the company has to employ someone else in his place, this also causes the company to deduct his salary and give to the substitution.

If you are an employer and you have to tell your employee about the deduction from his salary, you can get help from the sample letter given below.

Writing tips:

  1. When you are informing the employee about the deduction, make sure that you do it straightforwardly.
  2. You might be angry with the employee because of his non-professional behavior, there is no need to be rude.
  3. Tell the employee what exactly has happened that compelled you to take that decision.
  4. At the end of the letter, tell the employee about your expectations about his performance in the company.

Sample salary deduction letter:


Name of the employee


Designation of the employee in the company

Subject: salary deduction letter because of negligence

I am writing this letter to inform you about the company’s decision to deduct your salary. Unfortunately, the company was forced to take that decision because of the negligence from the work you have been showing for the past many months.

You have been so careless in your work and the company has sent you many verbal and written warnings. Last time, you were told that if you did not correct yourself, the company will make a deduction from your salary.

We have to pay Mr. ABC who was appointed at your place when you were absent and not attending our phone call. 

A company usually appreciates its employees upon showing good performance. Similarly, it also discourages the unprofessional behavior of the employee by taking disciplinary actions against him.

Please try to make sure that this sort of situation does not happen again. I hope that now you will work as per the policies of the company.


Name of the employer


File: Word (.docx) 2007+ and iPad
Size 19 Kb