Salary Deduction Letter Due to COVID

Covid-19 which is a form of coronavirus has bent all the economies of almost all the businesses at stake and finances are at knees. There has been seen a great decline in the financial resources and incentives that companies used to enjoy in pre-COVID-19 times.

Researches have shown a huge surge in companies making layoffs and salary deductions. Salary deductions are done at a wide range of executions in the realm of almost all the businesses. It has been one of the effective tools to curb the everyday worsening scenario of economic staggering.

Now the question is how to communicate this issue with the employees informing them about a specific amount to be deducted or cut. These pay-cuts or deductions are done by negotiating the problem with the employees’ representatives and administration.

To involve the employees directly in the problem, it is better to convey the matter of salary deduction to the employees by writing an email or a formal letter.

Follow the formal template patterns of writing business letter mentioning the name of the employee to be addressed, his designation, the subject of salary deduction in the context of reason i.e. Covid-19, and the percentage of deduction.

Also, mention the date of execution of salary deduction. Try to contextualize the reason in a limpid and lucid manner i.e. by explaining the daily rise in Covid-19 cases and surge in hazard, its effect on the economy and financial position of the business, and steps taken by the government.

Compare and contrast your steps for employees’ improvement and safety with other companies showcasing the economic safeguard.

Following is a sample letter to make salary deduction due to Covid-19

Sample Letter

7th August 20XX

Rosen Tech Shem Company
Manchester, St 5678

Subject: Salary Deduction due to Covid-19

Dear all,

I am Marlow Robinson, the CEO of XYZ Company. I would like to refer to our meeting that was on the 4th of this month regarding your consent on salary deduction from 5,000$ per month to 3,000$ per month for seven months. It is very well-known that the workers have been competent and working hard for the progress of the company. all the company’s fame and skyscraping success is because of the resilience of our employees that they showed in every difficult period.

As you all know that global coronavirus pandemic has plagued all over the globe and has put a great downfall to all kinds of businesses due to which companies are deducting the salaries of their employees to avoid layoffs. If we do not get satisfactory responses from employees regarding salary reduction, then we will have no other option than to layoffs them temporarily or permanently. We have faced a great decline in the line of business due to this pandemic and because of the ultimate lockdown in the country. The statistics have shown that the company’s economy has gone negative. So, the only option we are left with is to deduct the payments.

I hope that like always all of you will cooperate with us and this deduction is temporary though for an indefinite period. It is going to be implied for three months only. Once the company resumes its original position then it is promissory that your salaries shall face a rational but smart incentive. The company appreciates your collaboration and hard work in these difficult times.


Marlow Robinson

File: Word (.docx) 2007+ and iPad
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