Salary Deduction Reimbursement Letter

Salary Deduction Reimbursement Letter

Letters Kate

An organization often deducts its employees’ salaries for various reasons. Sometimes, a salary is deducted as part of disciplinary action. However, sometimes the organization reduces the salary because the employee has taken a loan that has not been repaid. Regardless of the reasons for the deduction, there are specific scenarios in which the deducted amount from the salary is reimbursed.

What is a salary deduction reimbursement letter?

When a company decides to compensate the employee for the amount deducted from their salary by paying the entire amount, it writes a salary deduction reimbursement letter to inform the employee. The purpose of this letter is to notify the employee that their salary, which has been deducted, is being reimbursed. This is a type of letter that greatly pleases the employee and makes them feel good to read.

When to write this letter?

A scenario in which the company feels the need to write the letter for compensation of the deducted amount is as follows:

  1. When an employee contributes to a company program by paying a certain amount, the company decides to reimburse them.
  2. When the company revises its salary deduction policies, it decides to reimburse the salaries deducted from all employees.
  3. When the employee who previously caused the company inconvenience and faced a salary deduction has compensated the company for the loss by paying the amount.
  4. In some organizations, it is a standard practice to deduct a fraction of the monthly salary each month. At the end of the employee’s job period, they are given a lump sum in the form of gratuity that helps them after they retire.

Tips for writing a deducted salary compensation letter:

The letter informing the employee of the compensation for the previously deducted salary is very important, and therefore, it needs to be written with complete efficiency. Below are some tips to follow:

  1. Before writing this letter, you should be clear in your head about why you have decided to reimburse the salary.
  2. Create a rough outline of the letter to determine what to include. This outline will help you when you start writing by ensuring you don’t forget any vital information.  
  3. Start the letter by stating that the company has decided to reimburse the salary that was previously deducted from the employee’s salary.
  4. Specify the reason for the compensation of the deduction. The reason should be specified in a clear and easy-to-understand tone. Make sure that you provide the reason in only one sentence.
  5. Let the employee know when he can expect to receive the money you are compensating him for. You should ensure that you can make the compensation at a time that doesn’t conflict with the employee’s commitment.

The sample letter provided below offers a quick guide to help you write a letter to the employee informing them about the reimbursement. You can use the same letter as it is to save your time.

Sample Letter

Effective date:

Name of the employee

Address

Subject: Salary deduction reimbursement for [X]

Dear Mr. ABC,

The total amount of 1000$ is being reimbursed that was deducted from your salary. You have paid the 1000$ amount that covers your pay period of five months of 20XX. Due to these payments, the company has decided to reimburse the salary deductions.

Enclosed is the complete breakdown of the amount indicated above. We want to inform you that you will receive the reimbursed salary within two weeks. If you would like to learn more about reimbursement or have any concerns regarding the reimbursed amount, please do not hesitate to contact Mr. XYZ in the Finance department. He will be readily available to assist you.

Regards,

Name of the recipient

Designation of the recipient

Signatures:

______________________

Salary Deduction Reimbursement Letter

File: Word (.docx) and iPad
Size 18 Kb

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