How would it be like if you could get your monthly salary any time you want without having to wait for your scheduled Payday? The modern-day financial tool of EWA (Earned Wage Access) has actually made this a viable option!
In the dynamically evolving economies post Covid-19, many employees have been forced to live paycheck-to-paycheck in order to continue their daily expenses, all the time facing the issue of a greater rate of inflation compared to their salary increase. Pitched against such a worrisome backdrop, bonuses and paid leaves are increasingly considered to be old school solutions to extend benefits to dedicated employees. The modern day employee is fully versed in their rights and as the job market continues to become increasingly competitive, relying on the model of EWA could possibly be the way forward for businesses to retain the backbone of their profitability in the shape of motivated employees while simultaneously attracting the best skillset in the market in a low-cost way.
Simply put, EWA does away with the prolonged wait for the employer-designated Payday, making withdrawing accrued salary as simple as three swipes on the service provider’s app. This financial wellness tool is conveniently executed through API integration with the existing payroll structures and HR management systems. It automatically allows the employees’ salaries to be calculated and shown in real-time on the mobile app facility.
If an employee typically earns Rs. 30,000 per month and is allowed transactions up to 50% of their total salary, they can opt to take out Rs.15, 000 any time prior to the Payday as soon as they earn and accumulate the desired salary in their accounts.
This intrinsically employee benefitting financial wellness tool, now being widely adapted in North America and Europe, comes with two-fold benefits. When employees have an option towards dignified liquidity in the face of adversities, they are less likely to fall prey to the crutches of traditional predatory loans and payday lenders who charge high interest rates. The convenience of EWA provided by businesses to their employees is proven to reap benefits in the form of more loyal and motivated workers who contribute directly towards boosted productivity. Well-known global companies have adopted the EWA model and continue to reap its benefits; a few examples include giants like Uber and Walmart.