salary freeze

A salary freeze is a temporary halt or suspension in an organization’s increment of employees’ salaries. This measure is usually adopted as a financial strategy during economic uncertainties or to assess internal cost structures.

During a freeze, no employee receives a raise, bonus, or other forms of increased compensation, regardless of performance or previously scheduled increases. This is typically seen as a cost-saving measure, often used to avoid layoffs or more severe financial cuts. Salary freezes are usually intended to be temporary until the organization’s financial health improves.