This was announced by the Premier League club in a statement on Monday.
Following the announcements, Arsenal become the first club to announce salary reductions for players.
“We are pleased to announce that we have reached a voluntary agreement with our first-team players, head coach and core coaching staff to help support the club at this critical time,” the club said.
“Reductions of total annual earnings by 12.5% will come into effect this month, with the contractual paperwork being completed in the coming days.”
Arsenal added that “agreed amounts” would be repaid if specific targets primarily linked to success on the pitch were met in the seasons ahead.
The club said the agreement with players was based on the assumption of the 2019/20 season being completed and the club receiving its full share of broadcasting revenues.
Recall that some Premier League clubs have furloughed employees since the new coronavirus outbreak while others have said their players have accepted wage deferrals.