Get paid early
Why is flexible access to wages the new standard of financial wellbeing?
In today’s fast-changing economic environment, financial stability is becoming a key factor in employee satisfaction and loyalty. The traditional monthly pay cycle often cannot cover sudden expenses, which leads to stress and to the need to look for alternative, often disadvantageous, financial solutions. In response to these challenges, the concept of “getting paid early” or “instant access to wages” (Earned Wage Access – EWA) is emerging and gaining popularity
Why is getting paid early so popular?
EWA is growing in popularity because it offers employees what traditional pay cannot – financial flexibility and control over money they have already earned. As many as 79% of employees would change jobs for financial flexibility, and almost 90% of employees would stay with an employer that offers EWA. This benefit is considered the most sought-after employee benefit, and as many as 89% of people stay longer at companies that let them draw their wages flexibly
Benefits for employees
Better financial control and peace of mind
EWA gives instant access to earned wages, which lets employees handle unexpected expenses and pay their bills on time
Less financial stress
Studies show a significant reduction in financial stress among EWA users
Avoiding expensive debt
EWA is a responsible alternative to predatory payday loans, high-interest credit cards and expensive overdraft fees
Higher savings
Access to earned wages can lead to a significant increase in emergency savings
Flexible repayment
With micro-loans (offered, for example, through apps such as NidBo), the employee can choose the number of repayment months or set their own instalment amount
Better cash flow management
Employees can plan their expenses better, manage their money more efficiently and even build savings, which gives them greater financial stability
Why do people ask to be paid early?
The main reason for the demand for EWA is persistent financial stress and insecurity among employees. In Slovakia, only half of employees are satisfied with their current pay. Surveys show that every second employee faces financial problems when changing jobs, and a critical 20% have no financial reserves at all. This creates an urgent need for access to money in the event of unexpected events.
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How to go about it?
Getting paid early is not just a modern benefit, but a strategic tool for companies in Slovakia and globally, one that addresses employees’ current financial needs while strengthening the employer’s position on the labour market. Although it is still at an early stage in Slovakia, persistent employee demand and a developing technological infrastructure point to a rapid acceleration of its adoption
Benefits for employers
Greater appeal and talent retention
Offering EWA significantly improves an employer’s benefits package. Companies can see employee retention rise by up to 36% and turnover fall by 21%
Higher motivation and productivity
Employees with more financial control tend to be more focused and productive at work. Dayforce reports up to 86% better performance and engagement with EWA
Less absenteeism
Pay on demand is linked to a reduction in unplanned absences
Saving operating costs and time
The employer cuts the time spent on requests for pay advances or interest-free loans. Implementing EWA is simple and can take just a few hours
Transaction tax optimisation
Companies can partially optimise the tax on payouts through an adjustable processing fee
A stronger employer brand
Companies are seen as supportive and innovative
Salary advance and getting paid early under the Slovak Labour Code
Getting paid early and a salary advance are not the same thing. A salary advance is a separate instrument of Slovak labour law; getting paid early is the way an employee gains access to wages already earned, which are then settled in the next regular pay.
Section 129 of the Slovak Labour Code — when wages are due: wages are payable in arrears, on the paydays agreed in the employment contract, in the collective agreement or in an internal regulation. If no paydays are agreed, wages are payable once a month in arrears, no later than the end of the calendar month following the month for which the wage is paid.
Section 130(3) of the Slovak Labour Code — salary advance: between paydays, the employer may provide the employee with a salary advance on agreed dates; at the employee’s request, it may also do so on another date agreed with the employee. The law describes an option for the employer (“may”), not an entitlement of the employee — an advance is therefore a matter of agreement.
Supreme Administrative Court of the Slovak Republic, file no. 7Ssk/17/2022: Section 130 of the Labour Code governs paydays and does not prohibit paying wages early. Wages must be delivered or credited to the employee no later than on the payday, so they can also be paid before it.
The difference in practice: getting paid early means access to wages already earned, which are settled in the next regular pay. A micro-loan is a separate credit relationship with a repayment schedule, and its instalments are deducted from the wage under Section 131 of the Labour Code.