20 January 2020

Advance payment of remuneration: what is it and when can it be requested?

hand with a pencil crosses the day 9 on a calendar of large numbers, some already crossed out.

One of the ways in which workers can obtain money in case of urgent need is the advance of remuneration, which will enable them to to advance part of their salaries in exceptional cases when necessary. However, the advance payment of remuneration has certain limitations and should always be considered as an exception when obtaining remuneration from the salary. 

Table of contents

An advance on salary

salary advance is an option that allows workers to receive part of their usual remuneration before the usual payday. When such an advance payment is made, the final amount will be deducted from the remuneration on the usual payment date, meaning that the worker ultimately receives the same amount of money despite the payments being made at different times. 

When can a worker request an advance on their salary

The Article 29 of the Workers' Statute is the one that states that “The worker and, with their authorisation, their legal representatives, shall have the right to receive, before the scheduled payment date, advances on account of work already performed.”However, it should be borne in mind that for remuneration advances to be correctly executed, a series of necessary requirements must be met:

This is a specific request

That is to say, the wage advance is formulated as an exceptional solution for a lack of liquidity. However, this makes it an option that can only be resorted to occasionally, never as a rule.

Only applicable to the monthly payroll

Another important aspect to bear in mind with regard to salary advances is that they can only be applied for in respect of the Monthly payroll of the worker. In other words, that No advance payment of any kind of bonus will be allowed. or special bonus to which the worker will have access in the future. 

Only applicable to work already done

Regarding the amount of money that can be requested as an advance, it should be borne in mind that the law does not establish an exact amount. But it does limit the advance to a maximum amount that is proportionate to the work already done. For example, if you have worked for two weeks and there are another two weeks until you receive your monthly pay, you will be able to request an advance on your remuneration corresponding to the two weeks of work already done, but not with respect to the two weeks that are still remaining to be worked until the usual payroll payment. 

Other ways to increase worker purchasing power 

Although a salary advance is a solution that workers can turn to when they are short of cash, there are other ways in which the company can increase the purchasing power of employees without the need to advance or increase wages. of these directly. The Flexible remuneration enables employees to convert part of their salary into different tickets, such as the Nursery Ticket or the Transport Ticket, among others. This, despite being applied to a specific part of the employee's salary, allows that part of the salary to be much more profitable, as, upon transformation, said part of the employee's salary becomes exempt from tax payments, which results in the employee increasing their purchasing power even though the salary they receive remains the same.

Edenred Spain

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