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Sample Agreement Letter for Salary Deduction

When companies face financial difficulties, they sometimes need to resort to salary deduction agreements with their employees. This can be a difficult and sensitive situation, but it is important to handle it professionally and transparently. A sample agreement letter for salary deduction can help both parties understand the terms and expectations of the situation.

Here is a sample agreement letter for salary deduction:

Dear [Employee’s name],

We regret to inform you that our company is currently facing financial difficulties and we must reduce our expenses. Unfortunately, this means that we must ask our employees to agree to a temporary salary reduction. We understand that this is a difficult situation for you and we want to make sure that we handle it in a fair and transparent manner.

We propose a temporary salary reduction of [percentage or amount] for a period of [duration]. This reduction will begin on [start date] and will end on [end date]. We will provide you with regular updates on the financial situation of the company and inform you of any changes to the salary reduction agreement.

We want to assure you that as soon as our financial situation improves, we will return your salary to its previous level. We are doing everything we can to ensure the long-term stability and success of our company, and we appreciate your understanding and cooperation during this difficult time.

Please sign the enclosed copy of this agreement letter to indicate your acceptance of the proposed salary reduction. If you have any questions or concerns, please do not hesitate to contact us.

Thank you for your dedication to our company, and we look forward to working with you through these challenging times.


[Company Representative’s Name]

[Company Representative’s Title]


By signing below, I, [Employee’s Name], agree to the temporary salary reduction of [percentage or amount] for a period of [duration], starting on [start date] and ending on [end date].

[Employee’s Signature]


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