Enter the original salary ($) and the percentage reduction (%) into the Calculator. The calculator will evaluate the Reduced Salary. 

Reduced Salary Formula

RS = OS - PR/100*OS

Variables:

  • RS is the Reduced Salary ($)
  • OS is the original salary ($)
  • PR is the percentage reduction (%)

To calculate Reduced Salary, multiply the reduction rate by the original salary, then subtract this result from the original salary.

How to Calculate Reduced Salary?

The following steps outline how to calculate the Reduced Salary.


  1. First, determine the original salary ($). 
  2. Next, determine the percentage reduction (%). 
  3. Next, gather the formula from above = RS = OS – PR/100*OS.
  4. Finally, calculate the Reduced Salary.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

original salary ($) = 800

percentage reduction (%) = 20

FAQ

What is a percentage reduction in salary?
A percentage reduction in salary refers to the decrease in an employee’s salary based on a specific percentage of their original salary. This reduction is calculated by applying the percentage decrease to the original salary amount.

How does a salary reduction affect my annual income?
A salary reduction directly decreases your annual income by reducing your monthly or bi-weekly paychecks. The total impact on your annual income depends on the percentage of the reduction and the duration for which the reduced salary is in effect.

Can a salary reduction be temporary?
Yes, salary reductions can be temporary. Employers may choose to reduce salaries for a set period due to financial constraints or other reasons. It’s important to understand the terms of the reduction, including its duration and any conditions for returning to the original salary.

What should I do if I’m facing a salary reduction?
If you’re facing a salary reduction, it’s important to review your budget and expenses to adjust to the lower income. You may also want to discuss the terms of the reduction with your employer, including any potential for future salary restoration or compensation adjustments.