In simple terms, an advance salary is when your employer agrees to pay your compensation in advance instead of the usual date. This is beneficial to anyone who is facing financial difficulties. An advance on your paycheck can help you overcome any monetary setback you have without taking a loan. In this post, I will guide you on when and how to ask for an advance salary from your employer as well as how to write an application for an advance salary.
It is called a salary advance when your employer agrees to give you a portion of your wage or your entire salary before your usual payday. The policy for handling salary advances varies from employer to employer.
The principle of salary advance is that you are borrowing from your future paychecks; hence you need to pay it back so that your future wages are not affected. Some employers levy interest and some don’t. It would be best to keep this in mind before requesting a salary advance.
How to ask for an advance on your salary?
Depending on the organization and the employer you work for, asking for a salary advance is a procedure that needs to be appropriately followed. You would still want to maintain a good working relationship with your employer. I have listed some steps you can take in this regard.
- First, consider your options. Think about the relationship you share with your employer and your reason for asking for the advance. If you are unsure about any of these, I suggest you find other alternatives. If you still feel a salary advance is required, then research the policies on salary advance.
- Every company will have maintained policies on salary advance. Your HR might be able to assist you in this. Go through the procedures and understand the terms and conditions thoroughly. Your employer should consider your reason as valid for entertaining your request, hence make sure your bases are eligible and follow the instructions on how to start the process.
- It’s best always to have a one-on-one with your employer and tell them of your situation before putting in your request in writing. The meeting should be scheduled with your employer and handled professionally. Do not tell your employer casually your request for a salary advance.
- You need to state precisely how much you need and elaborate on your plan for making it a one-time request. Mentally be prepared to have your request denied by your employer. Be willing to renegotiate if your employer doesn’t agree to your original terms. Keep in mind that if you are borrowing from a future paycheck, your next paycheck will be small.
- After the fine print of the salary, the advance has been ironed out until the last detail, draft a simple letter outlining the decided terms and conditions and submit it to your employer. It is best to have the document signed by both parties, .i.e. you and your employer. This gives you both legal protection.
- Once the salary advance has been disbursed to your account, it is good to write a sincere thank you letter to your employer. Remember, your employer is under no obligation to grant you a salary advance; hence you need to appreciate their empathy and flexibility.
When is the best time to ask for a salary advance?
Asking for a salary advance should not be taken lightly, and this process needs to be initiated with tact and thought. Salary advances are granted only when an employee faces a setback in their life. It could be a family emergency, health bills not covered by insurance, bereavement costs, etc.
It would be best if you consider salary advance as the last option. After you have exhausted all your options, you can request your employer for a salary advance, and it is best if you ask for an advance on your salary only once. Please do not make a habit out of it. A generous employer will always accommodate your request but do not take advantage of this as it will impact you negatively in the long run.
Template on Application for Advance Salary
Most organizations would already have a template for requesting a salary advance. But in case your organization doesn’t, I am providing a sample email below with the correct format, which you can use to draft an email.
To: Receiver mail address
Subject: Requesting an advance on my salary
Respected Sir/ Madam,
I am (Name) working in (Team) of the (department) in your reputed company .i.e. (company name). My employee ID is (employee ID) and has been working since (duration).
With utmost respect, I am writing this mail requesting you to sanction an advance on my salary for the month of (month). I am in urgent need of this money due to (mention the reason) and I request you to do the needful at the earliest.
I apologize for causing you any inconvenience.
I shall highly appreciate your kind support.
I hope the steps I have mentioned above guide you in writing an application for an advance salary to convince your employer to grant you your request. Salary advances are treated as short-term loans, and you will have to repay them by accepting smaller paychecks until your debt is paid off.