Islamic State has announced it is slashing its jihadis' wages by half to just £100 a month after losing a substantial amount of territory along with a number of airstrikes on their lucrative oil fields.

A new document released by the terror group's Treasury which is based in Raqqa, Syria, reveals that ISIS has decided to cut the salaries of all its fighters in half due to 'exceptional circumstances'.

The leaflet was published by Bayt al-Mal, the Treasury Ministry of ISIS, and although it does not go on to describe the reasons behind the move, it is thought to be related to the massive losses it has recently suffered.

A new document (pictured) released by the terror group's Treasury which is based in Raqqa, Syria, reveals that ISIS has decided to cut the salaries of all its fighters in half due to 'exceptional circumstances'

After quoting at length from the Koran the pronouncement says: 'So on account of the exceptional circumstances the Islamic State is facing, it has been decided to reduce the salaries that are paid to all mujahideen by half, and it is not allowed for anyone to be exempted from this decision, whatever his position.'

The Jerusalem Post reports the document says that the distribution of Zakat, a religious obligatory tax collected for poor Muslims, will not be hampered.

In December an international coalition launched a huge number of airstrikes against the terror organisation, targeting their oil fields.

Iraqi forces recently pushed ISIS fighters out of central Ramadi, the capital of Anbar province, months after the armed group captured the key city about 60 miles west of Baghdad.

Last week the coalition bombed the central headquarters of Bayt al-Mal in Mosul, destroying millions of dollars which stored there.

Afterwards, ISIS’ governor in Mosul issued a fatwa that permits ISIS killers to extort money from locals.

Last month it was revealed that ISIS is though to make around £52million a month through taxes, oil sales and selling illegal drugs.