diff --git a/bin/node/runtime/src/lib.rs b/bin/node/runtime/src/lib.rs
index c523ccc86fc7a..c88dc8d731d03 100644
--- a/bin/node/runtime/src/lib.rs
+++ b/bin/node/runtime/src/lib.rs
@@ -537,6 +537,7 @@ impl pallet_staking::BenchmarkingConfig for StakingBenchmarkingConfig {
 impl pallet_staking::Config for Runtime {
 	type MaxNominations = MaxNominations;
 	type Currency = Balances;
+	type CurrencyBalance = Balance;
 	type UnixTime = Timestamp;
 	type CurrencyToVote = U128CurrencyToVote;
 	type RewardRemainder = Treasury;
@@ -560,6 +561,7 @@ impl pallet_staking::Config for Runtime {
 	type GenesisElectionProvider = onchain::UnboundedExecution<OnChainSeqPhragmen>;
 	type VoterList = BagsList;
 	type MaxUnlockingChunks = ConstU32<32>;
+	type OnStakerSlash = ();
 	type WeightInfo = pallet_staking::weights::SubstrateWeight<Runtime>;
 	type BenchmarkingConfig = StakingBenchmarkingConfig;
 }
diff --git a/frame/babe/src/mock.rs b/frame/babe/src/mock.rs
index 15f53e7da0823..5677eb7e28e49 100644
--- a/frame/babe/src/mock.rs
+++ b/frame/babe/src/mock.rs
@@ -186,6 +186,7 @@ impl pallet_staking::Config for Test {
 	type CurrencyToVote = frame_support::traits::SaturatingCurrencyToVote;
 	type Event = Event;
 	type Currency = Balances;
+	type CurrencyBalance = <Self as pallet_balances::Config>::Balance;
 	type Slash = ();
 	type Reward = ();
 	type SessionsPerEra = SessionsPerEra;
@@ -202,6 +203,7 @@ impl pallet_staking::Config for Test {
 	type GenesisElectionProvider = Self::ElectionProvider;
 	type VoterList = pallet_staking::UseNominatorsAndValidatorsMap<Self>;
 	type MaxUnlockingChunks = ConstU32<32>;
+	type OnStakerSlash = ();
 	type BenchmarkingConfig = pallet_staking::TestBenchmarkingConfig;
 	type WeightInfo = ();
 }
diff --git a/frame/grandpa/src/mock.rs b/frame/grandpa/src/mock.rs
index 67d5a3d7fd373..5700fbe3aa36e 100644
--- a/frame/grandpa/src/mock.rs
+++ b/frame/grandpa/src/mock.rs
@@ -194,6 +194,7 @@ impl pallet_staking::Config for Test {
 	type CurrencyToVote = frame_support::traits::SaturatingCurrencyToVote;
 	type Event = Event;
 	type Currency = Balances;
+	type CurrencyBalance = <Self as pallet_balances::Config>::Balance;
 	type Slash = ();
 	type Reward = ();
 	type SessionsPerEra = SessionsPerEra;
@@ -210,6 +211,7 @@ impl pallet_staking::Config for Test {
 	type GenesisElectionProvider = Self::ElectionProvider;
 	type VoterList = pallet_staking::UseNominatorsAndValidatorsMap<Self>;
 	type MaxUnlockingChunks = ConstU32<32>;
+	type OnStakerSlash = ();
 	type BenchmarkingConfig = pallet_staking::TestBenchmarkingConfig;
 	type WeightInfo = ();
 }
diff --git a/frame/offences/benchmarking/src/mock.rs b/frame/offences/benchmarking/src/mock.rs
index 74cc29586920d..fba8c567059c2 100644
--- a/frame/offences/benchmarking/src/mock.rs
+++ b/frame/offences/benchmarking/src/mock.rs
@@ -161,6 +161,7 @@ impl onchain::Config for OnChainSeqPhragmen {
 impl pallet_staking::Config for Test {
 	type MaxNominations = ConstU32<16>;
 	type Currency = Balances;
+	type CurrencyBalance = <Self as pallet_balances::Config>::Balance;
 	type UnixTime = pallet_timestamp::Pallet<Self>;
 	type CurrencyToVote = frame_support::traits::SaturatingCurrencyToVote;
 	type RewardRemainder = ();
@@ -180,6 +181,7 @@ impl pallet_staking::Config for Test {
 	type GenesisElectionProvider = Self::ElectionProvider;
 	type VoterList = pallet_staking::UseNominatorsAndValidatorsMap<Self>;
 	type MaxUnlockingChunks = ConstU32<32>;
+	type OnStakerSlash = ();
 	type BenchmarkingConfig = pallet_staking::TestBenchmarkingConfig;
 	type WeightInfo = ();
 }
diff --git a/frame/session/benchmarking/src/mock.rs b/frame/session/benchmarking/src/mock.rs
index 5acc484f9ba62..6835736aa8e00 100644
--- a/frame/session/benchmarking/src/mock.rs
+++ b/frame/session/benchmarking/src/mock.rs
@@ -167,6 +167,7 @@ impl onchain::Config for OnChainSeqPhragmen {
 impl pallet_staking::Config for Test {
 	type MaxNominations = ConstU32<16>;
 	type Currency = Balances;
+	type CurrencyBalance = <Self as pallet_balances::Config>::Balance;
 	type UnixTime = pallet_timestamp::Pallet<Self>;
 	type CurrencyToVote = frame_support::traits::SaturatingCurrencyToVote;
 	type RewardRemainder = ();
@@ -186,6 +187,7 @@ impl pallet_staking::Config for Test {
 	type GenesisElectionProvider = Self::ElectionProvider;
 	type MaxUnlockingChunks = ConstU32<32>;
 	type VoterList = pallet_staking::UseNominatorsAndValidatorsMap<Self>;
+	type OnStakerSlash = ();
 	type BenchmarkingConfig = pallet_staking::TestBenchmarkingConfig;
 	type WeightInfo = ();
 }
diff --git a/frame/staking/src/benchmarking.rs b/frame/staking/src/benchmarking.rs
index 983f1bd54deb7..6c1589417f15a 100644
--- a/frame/staking/src/benchmarking.rs
+++ b/frame/staking/src/benchmarking.rs
@@ -802,7 +802,8 @@ benchmarks! {
 			&stash,
 			slash_amount,
 			&mut BalanceOf::<T>::zero(),
-			&mut NegativeImbalanceOf::<T>::zero()
+			&mut NegativeImbalanceOf::<T>::zero(),
+			EraIndex::zero()
 		);
 	} verify {
 		let balance_after = T::Currency::free_balance(&stash);
diff --git a/frame/staking/src/lib.rs b/frame/staking/src/lib.rs
index 872ed2e1af404..8003b9814c8e6 100644
--- a/frame/staking/src/lib.rs
+++ b/frame/staking/src/lib.rs
@@ -302,7 +302,7 @@ mod pallet;
 use codec::{Decode, Encode, HasCompact};
 use frame_support::{
 	parameter_types,
-	traits::{Currency, Get},
+	traits::{Currency, Defensive, Get},
 	weights::Weight,
 	BoundedVec, EqNoBound, PartialEqNoBound, RuntimeDebugNoBound,
 };
@@ -310,7 +310,7 @@ use scale_info::TypeInfo;
 use sp_runtime::{
 	curve::PiecewiseLinear,
 	traits::{AtLeast32BitUnsigned, Convert, Saturating, Zero},
-	Perbill, RuntimeDebug,
+	Perbill, Perquintill, RuntimeDebug,
 };
 use sp_staking::{
 	offence::{Offence, OffenceError, ReportOffence},
@@ -338,8 +338,7 @@ macro_rules! log {
 pub type RewardPoint = u32;
 
 /// The balance type of this pallet.
-pub type BalanceOf<T> =
-	<<T as Config>::Currency as Currency<<T as frame_system::Config>::AccountId>>::Balance;
+pub type BalanceOf<T> = <T as Config>::CurrencyBalance;
 
 type PositiveImbalanceOf<T> = <<T as Config>::Currency as Currency<
 	<T as frame_system::Config>::AccountId,
@@ -440,31 +439,30 @@ pub struct UnlockChunk<Balance: HasCompact> {
 
 /// The ledger of a (bonded) stash.
 #[derive(PartialEq, Eq, Clone, Encode, Decode, RuntimeDebug, TypeInfo)]
-pub struct StakingLedger<AccountId, Balance: HasCompact> {
+#[scale_info(skip_type_params(T))]
+pub struct StakingLedger<T: Config> {
 	/// The stash account whose balance is actually locked and at stake.
-	pub stash: AccountId,
+	pub stash: T::AccountId,
 	/// The total amount of the stash's balance that we are currently accounting for.
 	/// It's just `active` plus all the `unlocking` balances.
 	#[codec(compact)]
-	pub total: Balance,
+	pub total: BalanceOf<T>,
 	/// The total amount of the stash's balance that will be at stake in any forthcoming
 	/// rounds.
 	#[codec(compact)]
-	pub active: Balance,
+	pub active: BalanceOf<T>,
 	/// Any balance that is becoming free, which may eventually be transferred out of the stash
 	/// (assuming it doesn't get slashed first). It is assumed that this will be treated as a first
 	/// in, first out queue where the new (higher value) eras get pushed on the back.
-	pub unlocking: BoundedVec<UnlockChunk<Balance>, MaxUnlockingChunks>,
+	pub unlocking: BoundedVec<UnlockChunk<BalanceOf<T>>, MaxUnlockingChunks>,
 	/// List of eras for which the stakers behind a validator have claimed rewards. Only updated
 	/// for validators.
 	pub claimed_rewards: Vec<EraIndex>,
 }
 
-impl<AccountId, Balance: HasCompact + Copy + Saturating + AtLeast32BitUnsigned + Zero>
-	StakingLedger<AccountId, Balance>
-{
+impl<T: Config> StakingLedger<T> {
 	/// Initializes the default object using the given `validator`.
-	pub fn default_from(stash: AccountId) -> Self {
+	pub fn default_from(stash: T::AccountId) -> Self {
 		Self {
 			stash,
 			total: Zero::zero(),
@@ -507,8 +505,8 @@ impl<AccountId, Balance: HasCompact + Copy + Saturating + AtLeast32BitUnsigned +
 	/// Re-bond funds that were scheduled for unlocking.
 	///
 	/// Returns the updated ledger, and the amount actually rebonded.
-	fn rebond(mut self, value: Balance) -> (Self, Balance) {
-		let mut unlocking_balance: Balance = Zero::zero();
+	fn rebond(mut self, value: BalanceOf<T>) -> (Self, BalanceOf<T>) {
+		let mut unlocking_balance = BalanceOf::<T>::zero();
 
 		while let Some(last) = self.unlocking.last_mut() {
 			if unlocking_balance + last.value <= value {
@@ -530,57 +528,96 @@ impl<AccountId, Balance: HasCompact + Copy + Saturating + AtLeast32BitUnsigned +
 
 		(self, unlocking_balance)
 	}
-}
 
-impl<AccountId, Balance> StakingLedger<AccountId, Balance>
-where
-	Balance: AtLeast32BitUnsigned + Saturating + Copy,
-{
-	/// Slash the validator for a given amount of balance. This can grow the value
-	/// of the slash in the case that the validator has less than `minimum_balance`
-	/// active funds. Returns the amount of funds actually slashed.
+	/// Slash the staker for a given amount of balance. This can grow the value of the slash in the
+	/// case that either the active bonded or some unlocking chunks become dust after slashing.
+	/// Returns the amount of funds actually slashed.
 	///
-	/// Slashes from `active` funds first, and then `unlocking`, starting with the
-	/// chunks that are closest to unlocking.
-	fn slash(&mut self, mut value: Balance, minimum_balance: Balance) -> Balance {
-		let pre_total = self.total;
-		let total = &mut self.total;
-		let active = &mut self.active;
-
-		let slash_out_of =
-			|total_remaining: &mut Balance, target: &mut Balance, value: &mut Balance| {
-				let mut slash_from_target = (*value).min(*target);
-
-				if !slash_from_target.is_zero() {
-					*target -= slash_from_target;
-
-					// Don't leave a dust balance in the staking system.
-					if *target <= minimum_balance {
-						slash_from_target += *target;
-						*value += sp_std::mem::replace(target, Zero::zero());
-					}
-
-					*total_remaining = total_remaining.saturating_sub(slash_from_target);
-					*value -= slash_from_target;
-				}
-			};
-
-		slash_out_of(total, active, &mut value);
-
-		let i = self
-			.unlocking
-			.iter_mut()
-			.map(|chunk| {
-				slash_out_of(total, &mut chunk.value, &mut value);
-				chunk.value
-			})
-			.take_while(|value| value.is_zero()) // Take all fully-consumed chunks out.
-			.count();
+	/// # Note
+	///
+	/// This calls `Config::OnStakerSlash::on_slash` with information as to how the slash
+	/// was applied.
+	fn slash(
+		&mut self,
+		slash_amount: BalanceOf<T>,
+		minimum_balance: BalanceOf<T>,
+		slash_era: EraIndex,
+	) -> BalanceOf<T> {
+		use sp_staking::OnStakerSlash as _;
+
+		if slash_amount.is_zero() {
+			return Zero::zero()
+		}
 
-		// Kill all drained chunks.
-		let _ = self.unlocking.drain(..i);
+		let mut remaining_slash = slash_amount;
+		let pre_slash_total = self.total;
+
+		let era_after_slash = slash_era + 1;
+		let chunk_unlock_era_after_slash = era_after_slash + T::BondingDuration::get();
+
+		// Calculate the total balance of active funds and unlocking funds in the affected range.
+		let (affected_balance, slash_chunks_priority): (_, Box<dyn Iterator<Item = usize>>) = {
+			if let Some(start_index) =
+				self.unlocking.iter().position(|c| c.era >= chunk_unlock_era_after_slash)
+			{
+				// The indices of the first chunk after the slash up through the most recent chunk.
+				// (The most recent chunk is at greatest from this era)
+				let affected_indices = start_index..self.unlocking.len();
+				let unbonding_affected_balance =
+					affected_indices.clone().fold(BalanceOf::<T>::zero(), |sum, i| {
+						if let Some(chunk) = self.unlocking.get_mut(i).defensive() {
+							sum.saturating_add(chunk.value)
+						} else {
+							sum
+						}
+					});
+				(
+					self.active.saturating_add(unbonding_affected_balance),
+					Box::new(affected_indices.chain((0..start_index).rev())),
+				)
+			} else {
+				(self.active, Box::new((0..self.unlocking.len()).rev()))
+			}
+		};
+
+		// Helper to update `target` and the ledgers total after accounting for slashing `target`.
+		let ratio = Perquintill::from_rational(slash_amount, affected_balance);
+		let mut slash_out_of = |target: &mut BalanceOf<T>, slash_remaining: &mut BalanceOf<T>| {
+			let mut slash_from_target =
+				if slash_amount < affected_balance { ratio * (*target) } else { *slash_remaining }
+					.min(*target);
+
+			// slash out from *target exactly `slash_from_target`.
+			*target = *target - slash_from_target;
+			if *target < minimum_balance {
+				// Slash the rest of the target if its dust
+				slash_from_target =
+					sp_std::mem::replace(target, Zero::zero()).saturating_add(slash_from_target)
+			}
 
-		pre_total.saturating_sub(*total)
+			self.total = self.total.saturating_sub(slash_from_target);
+			*slash_remaining = slash_remaining.saturating_sub(slash_from_target);
+		};
+
+		// If this is *not* a proportional slash, the active will always wiped to 0.
+		slash_out_of(&mut self.active, &mut remaining_slash);
+
+		let mut slashed_unlocking = BTreeMap::<_, _>::new();
+		for i in slash_chunks_priority {
+			if let Some(chunk) = self.unlocking.get_mut(i).defensive() {
+				slash_out_of(&mut chunk.value, &mut remaining_slash);
+				// write the new slashed value of this chunk to the map.
+				slashed_unlocking.insert(chunk.era, chunk.value);
+				if remaining_slash.is_zero() {
+					break
+				}
+			} else {
+				break
+			}
+		}
+		self.unlocking.retain(|c| !c.value.is_zero());
+		T::OnStakerSlash::on_slash(&self.stash, self.active, &slashed_unlocking);
+		pre_slash_total.saturating_sub(self.total)
 	}
 }
 
diff --git a/frame/staking/src/mock.rs b/frame/staking/src/mock.rs
index 324a367f48e00..24572855264c4 100644
--- a/frame/staking/src/mock.rs
+++ b/frame/staking/src/mock.rs
@@ -238,6 +238,7 @@ parameter_types! {
 	pub static BagThresholds: &'static [sp_npos_elections::VoteWeight] = &THRESHOLDS;
 	pub static MaxNominations: u32 = 16;
 	pub static RewardOnUnbalanceWasCalled: bool = false;
+	pub static LedgerSlashPerEra: (BalanceOf<Test>, BTreeMap<EraIndex, BalanceOf<Test>>) = (Zero::zero(), BTreeMap::new());
 }
 
 impl pallet_bags_list::Config for Test {
@@ -263,9 +264,21 @@ impl OnUnbalanced<PositiveImbalanceOf<Test>> for MockReward {
 	}
 }
 
+pub struct OnStakerSlashMock<T: Config>(core::marker::PhantomData<T>);
+impl<T: Config> sp_staking::OnStakerSlash<AccountId, Balance> for OnStakerSlashMock<T> {
+	fn on_slash(
+		_pool_account: &AccountId,
+		slashed_bonded: Balance,
+		slashed_chunks: &BTreeMap<EraIndex, Balance>,
+	) {
+		LedgerSlashPerEra::set((slashed_bonded, slashed_chunks.clone()));
+	}
+}
+
 impl crate::pallet::pallet::Config for Test {
 	type MaxNominations = MaxNominations;
 	type Currency = Balances;
+	type CurrencyBalance = <Self as pallet_balances::Config>::Balance;
 	type UnixTime = Timestamp;
 	type CurrencyToVote = frame_support::traits::SaturatingCurrencyToVote;
 	type RewardRemainder = RewardRemainderMock;
@@ -286,6 +299,7 @@ impl crate::pallet::pallet::Config for Test {
 	// NOTE: consider a macro and use `UseNominatorsAndValidatorsMap<Self>` as well.
 	type VoterList = BagsList;
 	type MaxUnlockingChunks = ConstU32<32>;
+	type OnStakerSlash = OnStakerSlashMock<Test>;
 	type BenchmarkingConfig = TestBenchmarkingConfig;
 	type WeightInfo = ();
 }
diff --git a/frame/staking/src/pallet/impls.rs b/frame/staking/src/pallet/impls.rs
index 96af7009bed0c..ea4235f274da3 100644
--- a/frame/staking/src/pallet/impls.rs
+++ b/frame/staking/src/pallet/impls.rs
@@ -213,10 +213,7 @@ impl<T: Config> Pallet<T> {
 	/// Update the ledger for a controller.
 	///
 	/// This will also update the stash lock.
-	pub(crate) fn update_ledger(
-		controller: &T::AccountId,
-		ledger: &StakingLedger<T::AccountId, BalanceOf<T>>,
-	) {
+	pub(crate) fn update_ledger(controller: &T::AccountId, ledger: &StakingLedger<T>) {
 		T::Currency::set_lock(STAKING_ID, &ledger.stash, ledger.total, WithdrawReasons::all());
 		<Ledger<T>>::insert(controller, ledger);
 	}
@@ -606,7 +603,7 @@ impl<T: Config> Pallet<T> {
 				for era in (*earliest)..keep_from {
 					let era_slashes = <Self as Store>::UnappliedSlashes::take(&era);
 					for slash in era_slashes {
-						slashing::apply_slash::<T>(slash);
+						slashing::apply_slash::<T>(slash, era);
 					}
 				}
 
@@ -1248,7 +1245,7 @@ where
 				unapplied.reporters = details.reporters.clone();
 				if slash_defer_duration == 0 {
 					// Apply right away.
-					slashing::apply_slash::<T>(unapplied);
+					slashing::apply_slash::<T>(unapplied, slash_era);
 					{
 						let slash_cost = (6, 5);
 						let reward_cost = (2, 2);
diff --git a/frame/staking/src/pallet/mod.rs b/frame/staking/src/pallet/mod.rs
index d24509033e024..f57d5bd7c7a0a 100644
--- a/frame/staking/src/pallet/mod.rs
+++ b/frame/staking/src/pallet/mod.rs
@@ -75,8 +75,22 @@ pub mod pallet {
 	#[pallet::config]
 	pub trait Config: frame_system::Config + SendTransactionTypes<Call<Self>> {
 		/// The staking balance.
-		type Currency: LockableCurrency<Self::AccountId, Moment = Self::BlockNumber>;
-
+		type Currency: LockableCurrency<
+			Self::AccountId,
+			Moment = Self::BlockNumber,
+			Balance = Self::CurrencyBalance,
+		>;
+		/// Just the `Currency::Balance` type; we have this item to allow us to constrain it to
+		/// `From<u64>`.
+		type CurrencyBalance: sp_runtime::traits::AtLeast32BitUnsigned
+			+ codec::FullCodec
+			+ Copy
+			+ MaybeSerializeDeserialize
+			+ sp_std::fmt::Debug
+			+ Default
+			+ From<u64>
+			+ TypeInfo
+			+ MaxEncodedLen;
 		/// Time used for computing era duration.
 		///
 		/// It is guaranteed to start being called from the first `on_finalize`. Thus value at
@@ -177,6 +191,10 @@ pub mod pallet {
 		#[pallet::constant]
 		type MaxUnlockingChunks: Get<u32>;
 
+		/// A hook called when any staker is slashed. Mostly likely this can be a no-op unless
+		/// other pallets exist that are affected by slashing per-staker.
+		type OnStakerSlash: sp_staking::OnStakerSlash<Self::AccountId, BalanceOf<Self>>;
+
 		/// Some parameters of the benchmarking.
 		type BenchmarkingConfig: BenchmarkingConfig;
 
@@ -239,8 +257,7 @@ pub mod pallet {
 	/// Map from all (unlocked) "controller" accounts to the info regarding the staking.
 	#[pallet::storage]
 	#[pallet::getter(fn ledger)]
-	pub type Ledger<T: Config> =
-		StorageMap<_, Blake2_128Concat, T::AccountId, StakingLedger<T::AccountId, BalanceOf<T>>>;
+	pub type Ledger<T: Config> = StorageMap<_, Blake2_128Concat, T::AccountId, StakingLedger<T>>;
 
 	/// Where the reward payment should be made. Keyed by stash.
 	#[pallet::storage]
diff --git a/frame/staking/src/slashing.rs b/frame/staking/src/slashing.rs
index 2f381ad631fe5..9fc50eaf538f6 100644
--- a/frame/staking/src/slashing.rs
+++ b/frame/staking/src/slashing.rs
@@ -598,6 +598,7 @@ pub fn do_slash<T: Config>(
 	value: BalanceOf<T>,
 	reward_payout: &mut BalanceOf<T>,
 	slashed_imbalance: &mut NegativeImbalanceOf<T>,
+	slash_era: EraIndex,
 ) {
 	let controller = match <Pallet<T>>::bonded(stash) {
 		None => return, // defensive: should always exist.
@@ -609,7 +610,7 @@ pub fn do_slash<T: Config>(
 		None => return, // nothing to do.
 	};
 
-	let value = ledger.slash(value, T::Currency::minimum_balance());
+	let value = ledger.slash(value, T::Currency::minimum_balance(), slash_era);
 
 	if !value.is_zero() {
 		let (imbalance, missing) = T::Currency::slash(stash, value);
@@ -628,7 +629,10 @@ pub fn do_slash<T: Config>(
 }
 
 /// Apply a previously-unapplied slash.
-pub(crate) fn apply_slash<T: Config>(unapplied_slash: UnappliedSlash<T::AccountId, BalanceOf<T>>) {
+pub(crate) fn apply_slash<T: Config>(
+	unapplied_slash: UnappliedSlash<T::AccountId, BalanceOf<T>>,
+	slash_era: EraIndex,
+) {
 	let mut slashed_imbalance = NegativeImbalanceOf::<T>::zero();
 	let mut reward_payout = unapplied_slash.payout;
 
@@ -637,10 +641,17 @@ pub(crate) fn apply_slash<T: Config>(unapplied_slash: UnappliedSlash<T::AccountI
 		unapplied_slash.own,
 		&mut reward_payout,
 		&mut slashed_imbalance,
+		slash_era,
 	);
 
 	for &(ref nominator, nominator_slash) in &unapplied_slash.others {
-		do_slash::<T>(&nominator, nominator_slash, &mut reward_payout, &mut slashed_imbalance);
+		do_slash::<T>(
+			&nominator,
+			nominator_slash,
+			&mut reward_payout,
+			&mut slashed_imbalance,
+			slash_era,
+		);
 	}
 
 	pay_reporters::<T>(reward_payout, slashed_imbalance, &unapplied_slash.reporters);
diff --git a/frame/staking/src/tests.rs b/frame/staking/src/tests.rs
index f0de26b588577..21d4714985c6b 100644
--- a/frame/staking/src/tests.rs
+++ b/frame/staking/src/tests.rs
@@ -2104,7 +2104,7 @@ fn reward_validator_slashing_validator_does_not_overflow() {
 			&[Perbill::from_percent(100)],
 		);
 
-		assert_eq!(Balances::total_balance(&11), stake - 1);
+		assert_eq!(Balances::total_balance(&11), stake);
 		assert_eq!(Balances::total_balance(&2), 1);
 	})
 }
@@ -4854,3 +4854,216 @@ fn force_apply_min_commission_works() {
 		);
 	});
 }
+
+#[test]
+fn ledger_slash_works() {
+	let c = |era, value| UnlockChunk::<Balance> { era, value };
+	// Given
+	let mut ledger = StakingLedger::<Test> {
+		stash: 123,
+		total: 10,
+		active: 10,
+		unlocking: bounded_vec![],
+		claimed_rewards: vec![],
+	};
+
+	assert_eq!(BondingDuration::get(), 3);
+
+	// When we slash a ledger with no unlocking chunks
+	assert_eq!(ledger.slash(5, 1, 0), 5);
+	// Then
+	assert_eq!(ledger.total, 5);
+	assert_eq!(ledger.active, 5);
+	assert_eq!(LedgerSlashPerEra::get().0, 5);
+	assert_eq!(LedgerSlashPerEra::get().1, Default::default());
+
+	// When we slash a ledger with no unlocking chunks and the slash amount is greater then the
+	// total
+	assert_eq!(ledger.slash(11, 1, 0), 5);
+	// Then
+	assert_eq!(ledger.total, 0);
+	assert_eq!(ledger.active, 0);
+	assert_eq!(LedgerSlashPerEra::get().0, 0);
+	assert_eq!(LedgerSlashPerEra::get().1, Default::default());
+
+	// Given
+	ledger.unlocking = bounded_vec![c(4, 10), c(5, 10)];
+	ledger.total = 2 * 10;
+	ledger.active = 0;
+	// When all the chunks overlap with the slash eras
+	assert_eq!(ledger.slash(20, 0, 0), 20);
+	// Then
+	assert_eq!(ledger.unlocking, vec![]);
+	assert_eq!(ledger.total, 0);
+	assert_eq!(LedgerSlashPerEra::get().0, 0);
+	assert_eq!(LedgerSlashPerEra::get().1, BTreeMap::from([(4, 0), (5, 0)]));
+
+	// Given
+	ledger.unlocking = bounded_vec![c(4, 100), c(5, 100), c(6, 100), c(7, 100)];
+	ledger.total = 4 * 100;
+	ledger.active = 0;
+	// When the first 2 chunks don't overlap with the affected range of unlock eras.
+	assert_eq!(ledger.slash(140, 0, 2), 140);
+	// Then
+	assert_eq!(ledger.unlocking, vec![c(4, 100), c(5, 100), c(6, 30), c(7, 30)]);
+	assert_eq!(ledger.total, 4 * 100 - 140);
+	assert_eq!(LedgerSlashPerEra::get().0, 0);
+	assert_eq!(LedgerSlashPerEra::get().1, BTreeMap::from([(6, 30), (7, 30)]));
+
+	// Given
+	ledger.unlocking = bounded_vec![c(4, 40), c(5, 100), c(6, 10), c(7, 250)];
+	ledger.active = 500;
+	// 900
+	ledger.total = 40 + 10 + 100 + 250 + 500;
+	// When we have a partial slash that touches all chunks
+	assert_eq!(ledger.slash(900 / 2, 0, 0), 450);
+	// Then
+	assert_eq!(ledger.active, 500 / 2);
+	assert_eq!(ledger.unlocking, vec![c(4, 40 / 2), c(5, 100 / 2), c(6, 10 / 2), c(7, 250 / 2)]);
+	assert_eq!(ledger.total, 900 / 2);
+	assert_eq!(LedgerSlashPerEra::get().0, 500 / 2);
+	assert_eq!(
+		LedgerSlashPerEra::get().1,
+		BTreeMap::from([(4, 40 / 2), (5, 100 / 2), (6, 10 / 2), (7, 250 / 2)])
+	);
+
+	// slash 1/4th with not chunk.
+	ledger.unlocking = bounded_vec![];
+	ledger.active = 500;
+	ledger.total = 500;
+	// When we have a partial slash that touches all chunks
+	assert_eq!(ledger.slash(500 / 4, 0, 0), 500 / 4);
+	// Then
+	assert_eq!(ledger.active, 3 * 500 / 4);
+	assert_eq!(ledger.unlocking, vec![]);
+	assert_eq!(ledger.total, ledger.active);
+	assert_eq!(LedgerSlashPerEra::get().0, 3 * 500 / 4);
+	assert_eq!(LedgerSlashPerEra::get().1, Default::default());
+
+	// Given we have the same as above,
+	ledger.unlocking = bounded_vec![c(4, 40), c(5, 100), c(6, 10), c(7, 250)];
+	ledger.active = 500;
+	ledger.total = 40 + 10 + 100 + 250 + 500; // 900
+	assert_eq!(ledger.total, 900);
+	// When  we have a higher min balance
+	assert_eq!(
+		ledger.slash(
+			900 / 2,
+			25, /* min balance - chunks with era 0 & 2 will be slashed to <=25, causing it to
+			     * get swept */
+			0
+		),
+		475
+	);
+	let dust = (10 / 2) + (40 / 2);
+	assert_eq!(ledger.active, 500 / 2);
+	assert_eq!(ledger.unlocking, vec![c(5, 100 / 2), c(7, 250 / 2)]);
+	assert_eq!(ledger.total, 900 / 2 - dust);
+	assert_eq!(LedgerSlashPerEra::get().0, 500 / 2);
+	assert_eq!(
+		LedgerSlashPerEra::get().1,
+		BTreeMap::from([(4, 0), (5, 100 / 2), (6, 0), (7, 250 / 2)])
+	);
+
+	// Given
+	// slash order --------------------NA--------2----------0----------1----
+	ledger.unlocking = bounded_vec![c(4, 40), c(5, 100), c(6, 10), c(7, 250)];
+	ledger.active = 500;
+	ledger.total = 40 + 10 + 100 + 250 + 500; // 900
+	assert_eq!(
+		ledger.slash(
+			500 + 10 + 250 + 100 / 2, // active + era 6 + era 7 + era 5 / 2
+			0,
+			2 /* slash era 2+4 first, so the affected parts are era 2+4, era 3+4 and
+			   * ledge.active. This will cause the affected to go to zero, and then we will
+			   * start slashing older chunks */
+		),
+		500 + 250 + 10 + 100 / 2
+	);
+	// Then
+	assert_eq!(ledger.active, 0);
+	assert_eq!(ledger.unlocking, vec![c(4, 40), c(5, 100 / 2)]);
+	assert_eq!(ledger.total, 90);
+	assert_eq!(LedgerSlashPerEra::get().0, 0);
+	assert_eq!(LedgerSlashPerEra::get().1, BTreeMap::from([(5, 100 / 2), (6, 0), (7, 0)]));
+
+	// Given
+	// iteration order------------------NA---------2----------0----------1----
+	ledger.unlocking = bounded_vec![c(4, 100), c(5, 100), c(6, 100), c(7, 100)];
+	ledger.active = 100;
+	ledger.total = 5 * 100;
+	// When
+	assert_eq!(
+		ledger.slash(
+			351, // active + era 6 + era 7 + era 5 / 2 + 1
+			50,  // min balance - everything slashed below 50 will get dusted
+			2    /* slash era 2+4 first, so the affected parts are era 2+4, era 3+4 and
+			      * ledge.active. This will cause the affected to go to zero, and then we will
+			      * start slashing older chunks */
+		),
+		400
+	);
+	// Then
+	assert_eq!(ledger.active, 0);
+	assert_eq!(ledger.unlocking, vec![c(4, 100)]);
+	assert_eq!(ledger.total, 100);
+	assert_eq!(LedgerSlashPerEra::get().0, 0);
+	assert_eq!(LedgerSlashPerEra::get().1, BTreeMap::from([(5, 0), (6, 0), (7, 0)]));
+
+	// Tests for saturating arithmetic
+
+	// Given
+	let slash = u64::MAX as Balance * 2;
+	let value = slash
+		- (9 * 4) // The value of the other parts of ledger that will get slashed
+		+ 1;
+
+	ledger.active = 10;
+	ledger.unlocking = bounded_vec![c(4, 10), c(5, 10), c(6, 10), c(7, value)];
+	ledger.total = value + 40;
+	// When
+	let slash_amount = ledger.slash(slash, 0, 0);
+	assert_eq_error_rate!(slash_amount, slash, 5);
+	// Then
+	assert_eq!(ledger.active, 0); // slash of 9
+	assert_eq!(ledger.unlocking, vec![]);
+	assert_eq!(ledger.total, 0);
+	assert_eq!(LedgerSlashPerEra::get().0, 0);
+	assert_eq!(LedgerSlashPerEra::get().1, BTreeMap::from([(4, 0), (5, 0), (6, 0), (7, 0)]));
+
+	// Given
+	let slash = u64::MAX as Balance * 2;
+	let value = u64::MAX as Balance * 2;
+	let unit = 100;
+	// slash * value that will saturate
+	assert!(slash.checked_mul(value).is_none());
+	// but slash * unit won't.
+	assert!(slash.checked_mul(unit).is_some());
+	ledger.unlocking = bounded_vec![c(4, unit), c(5, value), c(6, unit), c(7, unit)];
+	//--------------------------------------note value^^^
+	ledger.active = unit;
+	ledger.total = unit * 4 + value;
+	// When
+	assert_eq!(ledger.slash(slash, 0, 0), slash - 43);
+	// Then
+	// The amount slashed out of `unit`
+	let affected_balance = value + unit * 4;
+	let ratio = Perquintill::from_rational(slash, affected_balance);
+	// `unit` after the slash is applied
+	let unit_slashed = {
+		let unit_slash = ratio * unit;
+		unit - unit_slash
+	};
+	let value_slashed = {
+		let value_slash = ratio * value;
+		value - value_slash
+	};
+	assert_eq!(ledger.active, unit_slashed);
+	assert_eq!(ledger.unlocking, vec![c(5, value_slashed)]);
+	assert_eq!(ledger.total, value_slashed);
+	assert_eq!(LedgerSlashPerEra::get().0, 0);
+	assert_eq!(
+		LedgerSlashPerEra::get().1,
+		BTreeMap::from([(4, 0), (5, value_slashed), (6, 0), (7, 0)])
+	);
+}
diff --git a/primitives/staking/src/lib.rs b/primitives/staking/src/lib.rs
index 15208df62cc66..57d858be1e0ef 100644
--- a/primitives/staking/src/lib.rs
+++ b/primitives/staking/src/lib.rs
@@ -19,6 +19,7 @@
 
 //! A crate which contains primitives that are useful for implementation that uses staking
 //! approaches in general. Definitions related to sessions, slashing, etc go here.
+use sp_std::collections::btree_map::BTreeMap;
 
 pub mod offence;
 
@@ -27,3 +28,27 @@ pub type SessionIndex = u32;
 
 /// Counter for the number of eras that have passed.
 pub type EraIndex = u32;
+
+/// Trait describing something that implements a hook for any operations to perform when a staker is
+/// slashed.
+pub trait OnStakerSlash<AccountId, Balance> {
+	/// A hook for any operations to perform when a staker is slashed.
+	///
+	/// # Arguments
+	///
+	/// * `stash` - The stash of the staker whom the slash was applied to.
+	/// * `slashed_active` - The new bonded balance of the staker after the slash was applied.
+	/// * `slashed_unlocking` - a map of slashed eras, and the balance of that unlocking chunk after
+	///   the slash is applied. Any era not present in the map is not affected at all.
+	fn on_slash(
+		stash: &AccountId,
+		slashed_active: Balance,
+		slashed_unlocking: &BTreeMap<EraIndex, Balance>,
+	);
+}
+
+impl<AccountId, Balance> OnStakerSlash<AccountId, Balance> for () {
+	fn on_slash(_: &AccountId, _: Balance, _: &BTreeMap<EraIndex, Balance>) {
+		// Nothing to do here
+	}
+}