Salary Advances

Salary advances are short-term loans given to employees that are deducted later from future salaries. Some companies allow such advances. The advance amount is deducted from the net income at the end of the month and over the forthcoming months. The salary advances are generally interest-free. Simply, the advance comes from the future salaries of an employee.

For instance, an employee may apply for a salary advance in January. This may be deducted either fully in February salary or over a few months as agreed.

An employer is not bound to give salary advances to employees. But if an employer does lend a salary advance to one employee, he is bound to fulfill the request of other employees as well. There cannot be discrimination based on race, religion, or disability.

Back to Glossary

People also look for

FIFO { First In First Out }

Data Driven Recruitment

Consolidated Statement

Paid Time Off { PTO }