Which is an example of an income deduction?
an unexpected salary cut
wages lost due to illness
vacation budget
retirement savings
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- An Unexpected salary cut is an example of income deduction. Unexpected salary cuts are done to save some money or to pay out the immediate creditors.
- These may be permanent or temporary.
- Pay cuts have a negative impact on the employees as no one would like their pay to decrease rather than to increase.
- It affects their motivation to work organization to reach their goals.
- Pay cuts should be properly communicated by the employer to the employees to motivate them to support the organization during tough times.
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