What Does Earned Wage Access Really Mean?

Earned Wage Access (EWA), also referred to as On-Demand Pay, is a financial service that allows employees to access a portion of their earned wages before the official payday. In contrast to traditional pay cycles, which often require waiting until the end of the month, Earned Wage Access provides employees with flexibility and control over finances, empowering workers to meet unexpected expenses without resorting to high-interest credit options.

Key Features of Earned Wage Access:

• Immediate Access to Pay – Employees can withdraw a portion of their already earned wages at any time during the pay cycle.

• Financial Flexibility – This service helps manage cash flow, reducing the need for payday loans or credit cards with high-interest rates.

• Improved Financial Wellbeing– With Earned Wage Access, workers can cover emergencies and avoid financial stress, leading to a more balanced financial life.

• No Debt Accumulation – Unlike loans, there is no debt involved with On-Demand Pay since employees are accessing money they have already earned.

How It Works:

Tracking Hours and Wages

Earned Wage Access platforms or payroll systems track the hours worked and calculate the amount available for early access.

Requesting Funds

Employees can use an app to request and withdraw a portion of their earned wages.

Instant Transfer

Once approved, funds are immediately sent to the employee's bank account.

To learn more about Level’s On-Demand Pay, watch the following video, or click here:

Why Earned Wage Access Matters:

Earned Wage Access has emerged as a valuable tool for both employees and employers. For employees, it offers greater financial resilience and empowerment. For employers, offering Earned Wage Access can improve employee satisfaction and retention, as it demonstrates a commitment to supporting workers' financial health.

There are many benefits of Earned Wage Access for employees which can be read here, and benefits for employers which can be read here.

To learn more about how On-Demand Pay can be integrated into your payroll systems, read more here.