Payroll advance: when to request it, how and where

Payroll with payroll advance discount

As you know, when you have a job you receive remuneration. It is your salary and most of the time it is paid through a payroll, always at the end of the month. But sometimes Situations may occur in which you need to be paid before. This is called a payroll advance and not many people know that they can request it.

But what is it exactly? How much can be ordered in advance? There is a lot of types? What happens next? If you are interested in the subject, then we give you all the keys so that you weigh it.

What is a payroll advance

First of all, you need to understand what it is a payroll advance and what do you expose yourself if you request it. It is also known as "payroll advance" and means that a company pays the payroll, that is, the salary, to a worker in advance for a specific reason.

Actually, this is a right that the worker has and that is included in the Workers' Statute. Specifically, in article 29 of the ET But it can also be regulated (always for the better) in collective agreements.

When requesting a payroll advance, not only the company can give it, but also banks or even private companies. As a general rule, the payroll advance is always extracted from the net salary, that is, deducting both Social Security and personal income tax paid by the worker.

How much money can be requested in advance

Payroll advance payment

The Workers' Statute does not establish any exact figure related to the payroll advance, but by collective agreement there can be a maximum percentage. This is established in most cases at 90% of salary. That is, you could not receive all the pay for the month before finishing it.

However, there are companies that, regardless of where we work, can offer future payroll advances, that is, receive the money corresponding to several future payrolls.

Who should request a payroll advance

When requesting an advance, the person who must do it is always the worker or worker. It is almost always done in the company where you work, and You must request the direct manager or the Human Resources department.

These usually have an application form because later they must assess whether or not that advance is really granted.

In the case of banks or private companies, it must also be the account holder or the person to whom that payroll belongs who must do it.

What is the procedure for a payroll advance

Imagine the case of a worker who needs his payroll money in advance to cover an unforeseen expense.

The first thing you should do is talk to your manager about the request. They can: either directly give you the form to fill in (if they have it in the company) or ask you to speak to the Human Resources department.

In one case or another, that is, whether or not there is a form, the worker must receive an affirmative or negative response regarding his request.

If it is affirmative, the company will be in charge of advancing the payroll but This action will also be reflected in your payroll software so that, in order to take out the payroll for that month, the advance payment that has been given is reflected with its date and the amount that will reduce the total that you will receive at the end of the month.

This will come specifically in “other deductions”, where the advance payment that has been given will be specified.

types of advances

Money delivery

When thinking about advances, as you may have intuited in what we have talked about, there are several types:

Advance of the days already worked

For example, imagine that a worker on the 20th goes to his boss and requests a payroll advance. If it is about the days already worked, which is something to which you are entitled by the Workers' Statute, then the payroll could be paid until the 19th (the 20th if you have worked it in full).

This is the most common and must then be reflected in the payroll as discounted.

Advance of future salaries

In this case, the Workers' Statute says nothing, but by collective agreement, workers could be allowed to request an advance on future salary.

That is, for days that have not yet been worked but are paid before.

Advance of extra payments

Another assumption that we can find is for the extra payments. If these are received in x full months, they can be requested in the future as long as it is reflected in the collective agreement.

If it is not, the company has no obligation to grant them, and here the decision of the company can enter more depending on the case of the worker.

Why it is useful to have a payroll and HR management software

Payment being made

In a company, payroll management can be very heavy. The HR department is the one dedicated to creating them and checking that there are no faults in them. However, if a payroll program is used, as long as the data is entered, there will be no mistakes nor will it be necessary to manage them manually or enter the data one by one and month by month.

Among the advantages offered by these software are:

  • Control fraud and mistakes. In other words, since it is a program that is going to manage the payroll, except for errors introduced when programming it, failures or even fraud in the company are avoided, so time is not lost or mistrust is created.
  • Faster and more efficient payment. Because by automating payroll, you can pay much faster and that allows for greater motivation in workers.
  • Avoid penalties. Due to a mistake in taxes, forgetfulness, etc. Having everything in one program makes it easier to get the final results without fear of making mistakes.
  • Greater savings. In human costs and also in time. In a matter of seconds you would have the payroll of all the workers and even when you have to make advance payments, entering this data is very easy and fast, without having to manually modify the payroll itself, since the program is in charge of doing the calculations.

Have you ever used a payroll advance with your company? How was the process?

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