The rise of on-demand pay has given employees the ability to access their earned wages whenever they need them. This is especially beneficial for Nigerians living paycheck to paycheck due to high costs of living and unexpected expenses. In this article, we were made to understand that many salary earners have had to change the quality of foodstuffs they buy and exchange household food basket items for those they can afford. But what if you could access your salary before your next payday? Don’t you think it would help?
On-demand pay, also known as earned wage access, is an employee benefit that provides employees with financial stability. One of its most significant advantages is that it helps employees avoid high-interest payday loans or credit card debt. Generally, these systems often have high interest rates that can be difficult to manage, but with on-demand payments, you can stay on top of your finances and avoid debt.
Also, with on-demand pay, employees can receive their money faster without having to wait until their next payday. This level of flexibility empowers employees to manage their finances on their own terms, allowing them to save, spend, and budget according to their individual needs and preferences. Additionally, if an employee needs to suddenly make urgent payments or attend to unexpected bills, on-demand pay can be their lifesaver.
To qualify for on-demand pay, employees must ensure that their employer offers this option. If they do not, employees can introduce the idea to their employer. Common eligibility requirements include a minimum length of employment, regular income, and a valid bank account that can receive electronic payments.
Another requirement for on-demand pay is to have a valid bank account that can receive electronic payments. This means that you must have an active bank account that can receive electronic payments, including direct deposits.
How can my employer offer me On-demand pay
Earnipay has made the process of signing up and onboarding users onto its on-demand pay service as fast and simple as possible. Employers can complete the process in mere minutes, ensuring that their employees can benefit from the service as quickly as possible.
To get started, employers need to upload all employee details such as their names, phone numbers, and salaries onto Earnipay’s platform. Once this information has been entered, Earnipay will automatically generate a unique link for each employee, which will be sent to their mobile phones. All employees have to do is click on the link, which will direct them to the app store to download Earnipay’s mobile app.
Once the app is downloaded, employees can sign up and start using the on-demand pay service immediately. This makes it incredibly easy for employees to access their earned wages whenever they need them, without having to wait for their next paycheck. Moreover, it eliminates the need for paperwork and manual processes, allowing employers to onboard their employees quickly and efficiently.
How much can i access with on-demand pay and what does it cost
The amount that can be accessed through on-demand pay is determined by the amount that has been earned so far. Typically, employees can access up to 50% of their earned wages before payday. For example, if someone earns a monthly net salary of N300,000 in a 30-day month, they would earn N10,000 per day. After 10 days, they would have earned N100,000. With Earnipay, they can access 50% of their earned salary every day at 5 pm, which eliminates the need to wait until the end of the month or borrow money to pay bills.
However, it’s important to note that each withdrawal attracts a fee, and the amount of the fee depends on the amount being withdrawn. Here’s a breakdown of the fees:
- N500.00 – N1,000.00 = N55.00
- N1,000.10 – N2,000.00 = N110.00
- N2,000.10 – N5,000.00 = N200.00
- N5,000.10 – 10,000.00 = N500.00
- N10,000.10 – N25,000.00 = N750.00
- N25,000.10 – N40,000.00 = N1,000.00
- N40,000.10 – N50,000.00/N1,250.00
It’s important for employees to be aware of these fees when using on-demand pay, as they can add up quickly. However, the ability to access earned wages before payday can be a helpful tool for managing finances and avoiding debt.