On-demand pay
On-demand pay lets employees draw wages they have already earned, before payday, and settles the amount in the next payroll.
The model behind it
On-demand pay works with the wage the employee has already accrued in the current period. The platform tracks how much has been earned, lets the employee request part of it, and then deducts the drawn amount from the next payroll. The money comes from the employer, and the employee never takes on a new creditor — the settlement happens inside the payroll.
What to check before choosing a provider
Who funds the payout
Some providers pay from their own balance and then collect from the employer. In NidBo the employer provides the money, so there is no hidden financing cost.
How the accrual is calculated
The platform must know what the employee has actually earned. That is why payroll data or a wage import matters.
What the employee is charged
In NidBo a salary advance is free for the employee and for the employer. Micro-loans are the paid product.
How it fits the payroll process
The deduction has to be visible in payroll and on the payslip, and it has to respect the statutory limits.
The difference between on-demand pay and a payroll advance is described on the payroll advance page, and the full category definition on the earned wage access page.