Income timing does not always match your daily expenses. As such, applying for a salary advance from your employer can be your most likely solution when facing a liquidity crunch.
As a business owner or HR executive, it is important to keep your employees motivated to ensure high levels of productivity. Stress brought about by financial shocks to the lives of your employees can significantly reduce their productivity and rob them off their productive hours.
Hence, providing employees with access to their wages early can match their daily needs to their income reducing their reliance on costly debt and improving employee satisfaction. The result is a harmonious workplace which fosters productivity by reducing the time employees spend thinking about life’s financial pressures.
5 things you need to know about salary advances in Kenya
- What is a salary advance?
With life’s uncertainties always knocking at one’s door, you might need to apply for a salary advance from your employer during your employment period. But what exactly is a salary advance? A salary advance is when an employer agrees to give an employee part of their salary before their typical payday which will then be deducted at the end of the pay period to reimburse the employer for the same.
- How to ask for a salary advance
Different employers have different policies regarding access to salary advances by employees. There are employers that require you to write a detailed salary advance request letter to be handled by a human resource contact and then follow the ensuing steps. Meanwhile, there are employers who use an earned-wage-access solution, allowing employees to access part of their earnings throughout the month through a mobile application.
- How much salary advance can you access?
To begin the process of applying for a salary advance, you need to know the amount you need to overcome the financial obstacle you are facing. This is essential so that you can request only the amount needed to maintain your purchasing power which will not leave you worse off when it’s deducted by the employer during your regular payday.
- Prepare your salary advance request
After you have determined the amount you need, it’s time to prepare that request. This can vary from one company to the next depending on their HR practices. Remember, in Kenya there’s the 2/3 rule whereby an employer cannot deduct more than 2/3 of the employee’s pay. As such, it’s important to keep that in mind.
- Submit your salary advance request
After you have prepared the request, you can then submit it in the format accepted in your company. This can be in form of an email or physically submitting the request form to HR. Be sure to adhere to all the policies setout by the employer to avoid unexpected rejection of the request.
How to apply for salary advance in Kenya
While financial discipline is important for everyone, it can be especially challenging when faced with unexpected shocks in life. As such, you may find yourself needing an extra boost from time to time before your payday and that’s where you may need to take a salary advance. Use this guide together with your company’s HR policies to breeze through the process.
