Salary advance: How do I request it from the company? Am I eligible? [Complete Guide]

Have you ever been in a situation where, despite your best planning, your expenses ended up exceeding your expectations? Perhaps an emergency arose, or simply some unexpected expenses compromised your budget.

If you identify with this situation and are thinking about using a salary advance to get through this, you're in the right place.

This comprehensive guide will cover all aspects of salary advances, from what they are to how to apply for them, so you can make an informed and confident decision.

What you will find in this post:

• How salary advance works
• How to request a salary advance
• How to calculate salary advance
• Is the company obliged to grant a salary advance?
• How many days do I need to have worked to get the advance?
• When is it a good option to ask for a salary advance?

How salary advance works

First, it's important to clarify that there's no law requiring a company to grant an advance salary to an employee. Therefore, before requesting an advance, it's important to learn about the company's policy and/or check with the union responsible for your labor market.

When salary advances occur, it usually goes like this: the company grants the employee 40% of their salary, and this amount is paid between the 15th and 20th business day of the month.

For example: Suppose your salary is R$ 2,000.00. If, after your request, the company granted the advance, you would receive R$ 800.00 in advance, which would be deducted from your next paycheck, scheduled to occur between the 15th and 20th business day of the month.

How to Request a Salary Advance – Step by Step

If you're in a tight financial situation and are considering applying for a salary advance, it's important to understand the process to apply properly.

Step 1: Request the advance from the company's HR department

The first step is to contact your company's Human Resources department and express your need for a salary advance. It's essential to speak with HR to understand the company's policy regarding salary advances. If company policy allows advances, HR will usually provide guidance on how to proceed with the request.

Step 2: Request analysis

Once the request is submitted to HR, it will be reviewed by the relevant team. At this stage, the company will verify that you meet the established criteria for granting the advance, such as length of service with the company, financial history, and other factors.

Step 3: Communication of the decision

After reviewing your request, HR will communicate the company's decision. If the advance is approved, they will provide information about the amount and the date the advance will be deposited into your account.

Step 4: Receiving the advance payment

Once the advance is approved, the amount will be deposited into your bank account as agreed. Be aware of any deductions that may be made from your next payment, as the advance amount will be deducted from your next payment. payslip.

Step 5: Discount the advance from the next salary

It's important to remember that the advance payment will be deducted from your next paycheck. Therefore, when you receive your next paycheck, you'll notice that the advance amount has been subtracted from your total. Be prepared for this reduction and plan your finances accordingly.

How to calculate salary advance

Calculating your salary advance involves understanding what percentage of your monthly salary the company will advance. Typically, the advance amount corresponds to a portion of your monthly salary, such as a 40%.

To calculate the advance, follow these simple steps:

1. Identify the percentage of the advance: Check with your company's Human Resources department to determine the standard percentage used for salary advances. This information is usually found in company policy.
2. Calculate the advance amount: To calculate the advance amount, multiply the defined percentage by the monthly salary. For example, if the company advances 40% of the monthly salary of R$ 3,000.00, the calculation would be: 0.40 x R$ 3,000.00 = R$ 1,200.00.

What are the most common ways to receive a salary advance?

There are several different ways for companies to grant salary advances, but the two most common are:

• Deposit into Bank Account: The amount can be deposited directly into your bank account.
• Voucher or Agreement: Some employers offer vouchers or agreements that can be used at partner establishments for salary advances.

Is the company obliged to grant a salary advance?

No, there's no legal requirement for a company to provide salary advances to its employees. Therefore, it's recommended that employees consult with the Human Resources department to understand the company's policy regarding this benefit.

How many days do I need to have worked to get the advance?

To request a salary advance, you generally need to have worked at least 15 days, which is equivalent to half a month. However, policies may vary between companies. It's always recommended to check with the Human Resources department to ensure accurate information about eligibility requirements.

When is it a good option to ask for a salary advance?

A salary advance can be a viable option in financial emergencies, such as unexpected expenses or unforeseen circumstances that require a quick injection of funds. If you're facing temporary hardship and know you can cover the advance amount with your next paycheck, an advance can be a convenient solution to avoid delays or worsening your financial situation.

However, it's essential to consider the true need for the advance and assess whether you can manage your finances differently, such as cutting unnecessary expenses or seeking alternative sources of income. Always remember to consider the potential deductions or financial impacts the advance may have on your next salary.

Ultimately, deciding to request a salary advance requires a careful assessment of your current financial situation and an honest analysis of your future repayment capabilities. By weighing the pros and cons and considering all available options, you'll be able to make an informed choice that best meets your short- and long-term financial needs and goals.