Frequently Asked Questions: Earned Wage Access
What is Earned Wage Access?
Earned Wage Access (EWA), also known as On-Demand Pay, allows employees to access a portion of their earned wages before their regular payday. It provides financial flexibility and helps employees manage unexpected expenses without resorting to high-interest loans or credit products.
How does Earned Wage Access work?
An employer can partner with a reliable Earned Wage Access provider, such as Level, who integrates their system with the HR technologies you use. Level already integrates with many payroll and HR providers (see webpage here). If you don’t see your provider, don’t worry as our dedicated team can work to integrate with additional providers.
Once set up, employees can request access to a portion of their earned wages through a mobile app or online portal, which will be transferred to their bank account instantly. The requested amount will be deducted from the employee's next paycheck.
To learn more about Earned Wage Access, check out our helpful videos here, or watch the short demonstration of our product below:
What are the benefits of Earned Wage Access?
What are the benefits of Earned Wage Access for employees?
• Financial Flexibility: Employees can handle unexpected expenses without waiting for their payday.
• Reduced Financial Stress: Immediate access to wages can alleviate financial anxiety and improve overall financial well-being.
• Avoid High-Interest Loans: By accessing their earned wages, employees can avoid costly payday loans or credit card debt.
What are the benefits of Earned Wage Access for employers?
• Increased filled shifts: employers which offer Level to employees have seen up to 62% more shifts filled.
• Employee Satisfaction: EWA provides employees with the freedom to access their earned wages when they need them most. This reduces financial stress and increases job satisfaction.
• Improved Retention: By offering on-demand pay, companies can significantly improve employee retention rates. Workers who feel financially secure are more likely to stay with their current employer. Companies have also seen up to 50% lower staff turnover by using Level.
To learn more about how Level, and On-Demand Pay, can benefit your company, check out our case studies here, or book a demo with one of our experts.
How much of my earned wages can I access?
The amount you can access typically depends on the Earned Wage Access provider's policies and the employer's arrangements. Generally, the employer will choose for their employees to be able to access a percentage of their earned wages, such as 50% of their gross earned income.
Is Earned Wage Access a loan?
No, Earned Wage Access is not a loan. Period. In fact, it was created as an alternative to loans. It simply provides access to the wages you have already earned. There is no interest charge, and the amount accessed is deducted from your next paycheck. Using Earned Wage Access does not impact your credit score as it does not involve credit checks or reporting to credit bureaus.
Is Earned Wage Access secure?
Yes, reputable Earned Wage Access providers use secure technology to protect your personal and financial information. Always ensure that the provider you choose follows industry-standard security protocols.
Level co-founded the UK's Earned Wage Access Code of Practice with other leading providers. This, along with all our other accreditations, which you can read more about here, is why everyone from public companies to key trade bodies trust Level. We would strongly recommend only contracting with providers who adhere to this code and have been independently audited to verify compliance with these standards.
How quickly can I access my earned wages?
Once set up, access to earned wages is typically very fast. Income is often available to access a few hours after a shift has been worked, and withdrawals enter your bank account seconds after requesting them.
How do I get started with Earned Wage Access?
15% of UK employers now offer Earned Wage Access to employees, and yours can too. For more detailed information about Earned Wage Access and how it can benefit you and your employer, please check out our videos, or contact us and book a demo.