Six situations in which salary may be reduced

In what situations can the salary be reduced?  

An employee's salary is never received in full, as part of it is always withheld monthly for tax obligations, income tax, and contributions to Social Security.

However, as a rule, the value tends to increase over time. But is it possible for an employer to decrease this value?  

On your website, DECO PROteste indicates six cases in which a worker's salary may be cut:

• Salary seizures to pay debts to the Tax Authority, Social Security, or other entities 

If required by law or court decision, salary garnishments to pay off debts to the Tax Authority, Social Security or other entities may warrant a decrease in wages. "For example, in the case of alimony to ex-spouses or children, the employer will be notified to garnish the salary. The cut can be one third of the salary, but the worker cannot receive less than the national minimum wage per month (820 euros since January 2024). The garnishment can be higher if it is ensured that at least three times the minimum wage is delivered to them (2460 euros since January 2024). Decreases may also be justified by compensations that the worker has to pay to the employer. However, here too, it is only possible if recognized by the courts," reads the organization's website.

• Monetary sanctions

When applied for the practice of disciplinary offenses, pecuniary sanctions can be another reason for cuts. In the law, one of the punishments in addition to reprimand, recorded reprimand, loss of vacation days, suspension with loss of remuneration, and dismissal, a "fine" is applied.

• Amortizations and interest on loans granted by the employer 

Both the repayments and interests of loans granted by the employer, as well as the early payment of part or all of the salary, can be offset at maturity.

• Values related to on-site meals, telephone use, and other expenses

This when these expenses are requested by the employee, with the employer consenting through their respective support.  

• Service commission 

Situation in which the worker starts to perform other functions, such as leadership, during a certain period, with an increase in salary. Therefore, when the commission ends, the worker "returns to the functions he performed before the start of the commission with a lower salary," explains DECO.  

• Business crisis

In cases of business crisis, the worker may see their compensation reduced if it is necessary to ensure the viability of the company and the maintenance of the job. For example, in the case of lay-off (lasting between six months and one year due to a catastrophe or other occurrence that seriously affects the company's normal activity). "Lay-off may include a reduction in working hours or the suspension of the contract. However, the worker will always be entitled to receive an amount equal to a minimum of two thirds of the gross normal remuneration or the value of the guaranteed minimum monthly remuneration (820 euros since January 2024), whichever is higher," reads, finally, in the organization's clarification.  

If you find yourself in a situation of unexpected salary reduction, you can (and should) seek help! The credit intermediaries and insurance mediators at Poupança no Minuto can help reorganize your portfolio of loans and insurance. To save on your monthly payments in the short term, you can access our services at no cost to search for financial solutions that lower the amounts you currently pay. Get in touch with an agent now and save yourself!