Summary
With an NBFC-funded EWA model like Salary++, the employer puts up no capital and carries no credit risk. The main costs are a per-withdrawal fee, which the employer can absorb or pass to workers, and a small amount of setup time.
With an NBFC-funded EWA model like Salary++, the employer puts up no capital and carries no credit risk. The main costs are a per-withdrawal fee, which the employer can absorb or pass to workers, and a small amount of setup time. Against this, employers often already pay hidden costs for informal advances and pay-related attrition.
What the employer does not pay
- No capital. The NBFC partner funds every withdrawal.
- No credit losses. Withdrawals are limited to earned wages, and the lender carries the funding risk.
- No change to salaries. Total pay stays the same.
- No change to pay dates. Payroll runs on its usual cycle.
What the employer may pay
| Cost | Who bears it | Notes |
|---|---|---|
| Per-withdrawal fee | Employer or worker, by choice | Shown to the worker before each withdrawal if they pay it |
| Setup and integration | Shared | Attendance and payroll data connection |
| Payroll deduction step | Employer or contractor | Using the deduction file provided |
| Worker communication | Employer | Onboarding sessions and notices |
Absorb the fee or pass it on?
Absorbing the fee makes EWA a true benefit. It is best when retention is the main goal.
Passing it to workers keeps employer cost near zero. It works when the fee is small and clearly shown.
Some employers absorb the fee for one or two withdrawals a month and pass on the rest.
The cost of not offering EWA
- Time spent on informal advance requests
- Advances lost when workers leave
- Absenteeism when workers run short of cash
- Attrition to employers who pay faster
- Contractor cash tied up in advances
Frequently asked questions
- Is there a minimum workforce size?
- EWA works best where attendance data is reliable and payroll is regular. Ask us for your site.
- Does EWA affect our accounts?
- Withdrawals are funded by the NBFC and recovered through payroll. Discuss the accounting treatment with your finance team.