Congratulatory and Condolence Money Culture in Small/Mid-sized Companies

I used to work in a different industry and recently moved to a manufacturing company.
I had a family event recently—a funeral.
I thought it was normal when I heard that the company would collect condolence money under the name of "All Employees,"
but it turns out they don't collect it from the employees themselves; instead, they deduct about 50,000 to 100,000 KRW directly from our salaries. ㄷㄷ It's processed like an advance on wages.
I didn't participate because I had already said from the beginning that I would send my condolences personally,
but whether it's because they don't have 100,000 KRW in their wallets or whatever the reason may be, I don't think it looks good to create unnecessary entries in the accounting books like that.
Is it common for small/mid-sized companies to handle congratulatory and condolence expenses this way?