Salary advances are a type of financial benefit an organization may offer its employees. They are earned salary benefit which means that an employee can withdraw the amount of salary he has earned up to the number of days he has worked in that particular month. This amount can be further deducted from the net income at the end of the month.
For example, an employee has applied for it in the middle of the month. At the end of the month, the account will get credited with the remaining earned of the month, and the advance salary amount will be displayed on the salary slip.
It offers numerous benefits to employees. Some of the benefits are:
Emergencies such as medical emergency, urgent repair work of home, travel emergencies contributes to unpredictable emergencies. It acts as aid to deal with these emergencies.
It acts as a collateral free loan unlike gold loan. You can get advance salary without depositing a collateral. This amount can help the employee to deal with various situations.
An employee can get advance salary from their employer at low or no interest rate which reduce the overall interest cost on total amount.
There is quick disbursal of this amount as it is directly deposited in the bank account of employer with paperless process.