On-Demand Pay Powered By Earned Wage Access

Liquidity at the point in need is why there's much to love being able to access ones earned wages before payday.

Besides borrowing from family and friends, workers who find themselves in need of cash before payday had little alternatives beyond predatory pay day loans, overdrafts, pawn shops and the likes.

Timing of wages can make for a happy and engaged workforce.

It is sometimes surprising to note the number of employers we've told about earned wage access (EWA) that are genuinely impressed by what it offers their employees and how it benefits them as well.

Imagine an employees net (after tax) wages are ₦93,000 a month and we are 12 days into a 31 day calendar month when the employee experiences a sudden financial emergency. For those 12 days worked the employee has accrued earned but unpaid wages of ₦36,000. If they could access a portion, say 50%, of those wages before payday then they'd could have up to ₦18,000 to attend to their financial stress. Worth noting that the monies released to them are monies due and not a loan and they can access their accrued unpaid wages literally anytime before payday. On payday their employer pays them the remainder of their net wages minus the portion they already accessed before payday. The percentage (%) of accrued unpaid wages they can access is determined by their employer hence they don't access all their accrued pay before payday so that whenever the employers scheduled payday occurs they will still get money. Employers extending this capability to their employees can generally expect lower absenteeism, higher productivity and reduction in turnover as some of the benefits.

The amount of money literally stuck within the payroll cycle, until payday, is enormous. I mean every time or day an employee works, they earn wages, accruing pay for 40 hours (weekly), 80 hours (bi-weekly) or at least 160 hours (monthly) before receiving their paycheck. Financial challenges, unplanned expenses and household budgetary shortfalls typically occur during these periods between paychecks exasperated by the rigidity of paydays themselves. It is no surprise that access to ones wages can sometimes be required before payday.

Rigid paydays can now be flexible.

Wagefit on-demand pay powered by our EWA service, offered as an optional employee benefit, is a solution that provides employees with the ability to access their accrued but unpaid wages as they earn it. By giving employees this flexibility you give them peace of mind about their own cash flow, allow them to budget more accurately whilst significantly increasing their ability to choose how they resolve their financial challenges in a cost effective and socially responsible way by replacing expensive financial habits like relying on predatory payday loans or costly overdrafts amongst others. This flexibility is making a difference by encouraging good money hygiene and a healthier approach to personal finance decision making.

On-demand pay is reliable and inexpensive.

Free for employers and extremely low cost for employees, just a one-off nominal transaction fee that is payable only one time on a per-transaction basis, the Wagefit platform is well-suited for both the employer and employee.

A significant amount of people in Nigeria worry about money and they typically bring their worries to work. That's not a positive influence on financial or mental health and if this continues for a significant period can lead to people taking time off, being signed off sick or quitting all together.

There is a different and better way to show your employees that their financial and mental health matters. Get in touch with Wagefit to give your employees the love of being able to access a portion of their earned wages, when they need it, before payday.