The salary advance is not foreseen in the labor laws, being a way to advance a portion of the salary throughout the month. This concentrates benefits for those involved, but also precautionary actions to ensure the financial well-being of employees.
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The labor law operates on different fronts to guarantee professionals the most just conditions to develop their activities and, also, to be duly subsidized.
In this context, we have an issue that still raises a lot of doubts – both for HR specialists and employees – which is the salary advance .
And, if you made it to this post, you should have one or two questions regarding the salary advance , such as the situations in which the employee can request it, for example.
To solve this and many other doubts, we have prepared this post that will highlight what the CLT (Consolidation of Labor Laws) says about the salary advance and how the company’s policy must be aligned with the current legislation to avoid problems. Check out!
What is the salary advance?
In the legislation, the salary advance is mentioned with little precision, which raises questions of all kinds, such as its mandatory nature.
We can point out, however, that the theme is cited in article 462 of the CLT to authorize the salary discount when it comes to an advance – requested or spontaneously granted.
In other words: if there is no one or more expensive and definitive laws, how can we position ourselves in the face of situations that demand a salary advance?
How it works?
A good starting point is the analysis of what the union in its category predicts for the salary advance . In its own conventions, some rules are already contemplated.
Thus, as much as the CLT is not clear on the subject, at least the unions provide a “north” for the contracting company to be able to align itself with a uniform standard.
And how it works: when the employee requests the salary advance and the company grants it, the amount is deducted only from the salary that will be paid in the following month.
In addition, some issues should be considered, such as:
- in general, the anticipated amount must correspond to 40% of the employee’s salary;
- the date chosen for the salary advance is variable, but it also follows a pattern that occurs between the 15th or 20th of the month.
Thus, either the salary advance can come through an employee request, if it is not a common practice of the company, or the contractor himself can offer this flexibility as a differential – considering that there is no requirement on this.
Even because it is not a requirement, the employee may request that the company does not forward the advance to him, specifically.
After all, it is entitled to receive the total salary by the fifth working day of each month, as provided.
How to deal with the selectivity of the salary advance?
It is important to note that, although the employee can talk to the HR sector to interrupt the advance, the same cannot be provided if the decision comes exclusively from the company – aiming to privilege one and the other employee.
For example: if a production sector receives the wage advance , the sales sector (for example) also has this right – except for some restrictions inherent to the category’s union.
What percentage is used for the advance?
As we have pointed out, the salary advance is not rigid in any way – including the percentage chosen by the company.
In common agreement, however, the total amount is 40% deposited as an advance . It is worth mentioning that the percentage is equivalent to the salary of each person .
Therefore, if someone receives R $ 2 thousand, the salary advance corresponds to 40% of that amount – R $ 800, therefore. If someone receives R $ 10,000, the amount is R $ 4,000 and so on.
How can the company make available to the salary advance?
As we have seen, the wage advance is an opportunity to make money very welcome in the budget routine of many people!
Precisely because of this, this type of benefit can be presented in different ways. Let’s get to know the main ones?
The CareerBuilder survey, conducted in 2017, attested that 78% of respondents are barely able to settle accounts with their salary .
In addition, of the more than 3,000 respondents, about ¾ of them also attested that they have one or more accumulated debts. Clear sign that something needs to be changed, agree?
On- demand pay is a modality that has been gaining momentum in the market and aims to add flexibility so that employees receive for hours worked, but not yet paid. Something that alleviates many of the financial problems – and those generated by the challenges of closing accounts.
Let’s look at a simple example: if the company has the habit of making payments for its human resources only on the 30th, or on the fifth business day of each month, professionals are limited to that .
If a pending account will earn interest in that period when there is no more money in the account, the debts will accumulate. However, with the offer of the salary on demand, the professional can receive the payment of the days already worked whenever he wants. Best of all, he has the flexibility to plan his month.
We recommend that you read this article to better understand on-demand pay . In it you will understand the features of Xerpay , a corporate benefit of payments on demand.
It is popularly the best known measure in the labor market. In it, the salary advance is made available through bank deposit – or in kind -, as payment is usually made in the company.
It is worth noting that it can be made available according to the employer’s wish, but also according to the request of each employee interested in the salary advance .
The problem with that? For employees without much care for their financial well-being , this can translate into a mismanagement that, over time, becomes debt and even the accumulation of these debts .
For that reason, a financial education program – promoted by the company – is an interesting alternative. After all, poor financial health is one of the biggest problems that employees are unable to leave at home, interfering with the quality of work.
For the company, the voucher is a good choice because it offers flexibility in the means of payment.
The challenge? Reconcile deposit dates for employees who want the voucher and those who have no interest. Our tip: invest in good management software!
The wage advance is granted here using a multi-benefit card. An interesting variable to financial education mentioned above.
And do you know why? Because this type of modality allows expenses to be directed to domestic expenses, exclusively. Something that prevents superfluous spending, therefore.
Why invest in a salary advance?
The company can use the salary advance and its implementation measures as extra attention to its employees.
In other words: through research and conversations with them, the advance can be everyone’s wish, and it will be promptly attended to after the planning and execution process .
In addition, it can be quite a differentiator for the company to act, indirectly, as a financial management consultant for its staff. When this is added to financial education actions, the benefits are varied.
Speaking of positive points, the application of the salary advance can be converted into several palpable and symbolic motivational aspects. Shall we see some of them?
- it does not interfere with the company’s cash flow;
- the benefit is practiced directly on the payroll – thus not interfering with the workflow once implemented;
- improves relations with employees;
- highlights the valorization of professionals, taking a measure according to their desire;
- consequently, it increases the engagement and productivity of the teams;
- participates in the employee’s financial management.
Just pay attention to the fact that this feature must be continuously worked on so that the employee does not lose control of their accounts .
Although it is not the responsibility of the company, the difference has everything to enhance their human resources, add more to the company ‘s reputation and retain their t a l ents that will continue to develop within their professional routine