Do you need a little money? Would you like to ask your employer for a salary advance? The advance on salary is based on an agreement between the employer and his employee. It is not the same as an advance on salary or a money loan.
If your employer grants you a salary advance, you will gradually repay the amount received through a series of deductions from your monthly salary. To find out how to request a salary advance from your employer and how to repay it, read our article.
What is a salary advance?
An advance on salary is a sum of money that an employer agrees to give to an employee in advance payment of his scheduled work hours, but not yet performed. A wage advance is not directly defined by the Labor Code.
Examples of situations where an advance on salary is requested: an employee asks his employer on June 20 for an advance on his salary for the month of July; an employee asks his employer, at the beginning of his contract.
An employer is under no obligation to accept an advance on salary. The advance on salary is a form of loan, but it is a specific loan. The jurisprudence distinguishes it from a loan of money that an employer could grant to an employee outside of their contractual relationship under labor law.
To be considered as such, the advance on salary must be reimbursed by deductions from the employee’s next salary and appear on his payslips.
Good to know: if the employer and the employee agree on different repayment terms, regardless of the employee’s monthly income, then it is not a salary advance but a civil loan and is not governed by labor law.
What is the difference between advance payment and a request for a salary advance?
A salary advance is based on a discretionary agreement by the employer. It should not be confused with an advance on salary, which an employee is entitled to request and receive in the middle of each month.
In the context of the advance payment, the employee asks his employer to pay him for the hours already worked. Therefore, an employer cannot refuse a valid request for an advance payment.
In the case of an advance on salary, the hours of work have not been completed and the employer is free to grant or refuse it. In addition, the reimbursement of the advance payment and the salary advance is different.
How to ask your employer for an advance on salary?
What conditions must be met in order to request an advance on salary from your employer? And how much money should I ask for? Answers below.
What are the conditions to ask for an advance on salary?
As the advance on salary is not directly governed by the Labour Code, there are no formalities or particular conditions to meet in order to ask for an advance on salary from your employer.
You can ask for an advance on salary orally or in writing. Contact your employer, your supervisor, the human resources department, or the payroll department.
Please note: if your request for a salary advance is denied, you have no recourse other than to ask for a deposit.
What is the maximum amount of a salary advance?
While there is a limit to the amount of a request for a down payment, there is no limit or cap on a request for a salary advance. You can ask your employer for any amount you wish, but of course, if the amount is too high, you run the risk of being denied.
How are the wages advanced paid?
The employer who agrees to an advance on salary must establish an agreement with his employee or have him sign a receipt.
In this document, the employer will indicate :
- the amount paid ;
- the date of payment and the method of payment used (bank transfer, check);
- the repayment schedule through payroll deductions.
How is the repayment of a salary advance calculated?
The reimbursement of the advance on salary is made by successive deductions from salary.
The Labor Code limits the number of salary deductions that an employer can make to 1/10th of the employee’s net salary, the salary advance cannot be deducted in full from the next salary and its reimbursement must necessarily be staggered.
Labor Code also specifies that “advance payments on work in progress are not considered as advances”. As a result, an employer may withhold 1/10th of an employee’s remuneration as reimbursement for the advance and deduct from this same remuneration any advance payment.
How are the social contributions for the advance on salary calculated on the payslip?
When paying the employee the advance on salary, the employer must not deduct the amount of the employee and employer contributions. The employer pays the entire amount agreed upon to the employee.
The contributions will then be deducted progressively from the monthly net wages as the reimbursement is made.
The amount deducted by the employer for the reimbursement of the advance and as a salary deduction must appear on each payslip concerned with the precision “advance on salary” under the line “net taxable”.
Good to know: the advance on salary is taxable in the same way as the employee’s other income in the month in which it was paid.
What happens to the reimbursement of the salary advance in the event of resignation or dismissal?
If you leave the company, through resignation or dismissal for example, after having received a request for a salary advance, the 1/10th rule does not apply to the sums on your receipt of payment that is not in the nature of salary.
Your employer will be able to deduct the full amount you owe him or her as a salary advance from certain amounts owed, such as severance pay or damages.