# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Salary Freeze

Written By
Paul Tracy
Updated October 16, 2020

What is a Salary Freeze?

A salary freeze is a temporary cessation of pay raises.

How Does a Salary Freeze Work?

For example, Company XYZ makes widgets. Company ABC recently launched the new iWidget, which is taking away a significant amount of market share from Company XYZ. Company XYZ is now having trouble generating enough cash. As a way to save money, Company XYZ institutes a salary freeze. Under the salary freeze, no employees will be awarded raises until further notice.

Why Does a Salary Freeze Matter?

Salary freezes are a way to reduce expenses. In many cases, they can indicate the presence of larger problems at the company and can damage morale, which can increase turnover among employees.

Ask an Expert about Salary Freeze
At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Salary Freeze.
Be the first to ask a question

If you have a question about Salary Freeze, then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Salary Freeze, then please ask Paul.

Ask a question Read more from Paul

Read this next

Paul Tracy - profile
Ask an Expert about Salary Freeze

By submitting this form you agree with our Privacy Policy

Share
close
Don't Know a Financial Term?
Search our library of 4,000+ terms