What is it? 

Salary Draw Down solutions are a financial management tool that allows staff to access a portion of their earned salary before the actual payday, the amount is usually limited to a percentage of the employee’s total earnings for the pay period. This approach is also known as wage advance or wage streaming. 

How Does It Work? 

Salary Draw Down solutions allow employees to access a portion of their earned wages before the regular payday—the product gives employees more control over their finances and flexibility in managing their cash flow.  

It typically works by Staff requesting the draw down of their earnings via the software and from there verifying accurate work hours to see if they are eligible, calculating earnings that can be accessed in advanced and once it has been approved the software initiates an instant transfer of the requested amount to the employee’s bank account. 

Employees using salary draw-down software are not taking out loans; it is intended to be a responsible financial tool. Rather than waiting for their usual pay check, they are accessing a portion of their previously earned money. This will help in employee retention within your organisation and may result in a significant rise in staff satisfaction. 

To safeguard the interests of employers and employees, it is crucial to make sure that the pay draw-down software conforms with the relevant laws and regulations. 

What did people use before? 

Before the introduction of salary drawdown software and wage streaming solutions, employees typically had limited options for accessing their earned salary before the official payday. Traditional methods involved requesting an advance directly from their employer or informal arrangements within the workplace. Employees would often approach their supervisors or human resources departments to discuss their financial needs and negotiate an early payout of a portion of their wages. However, these processes were manual, time-consuming, and subject to the policies and discretion of individual employers.  

Top Benefits 

• Reduced Financial Stress 
• Increased Productivity 
• Lower Turnover and Recruitment Costs 

To read more about Salary Draw Down solutions check out our benefits and deep-dive articles.