Advance & Arrears

This salary can also be called the ‘Advance Salary Loan’ because it is a short-term loan. Here, the salary of the month is given to the employee in advance and will be deducted from future salaries.

To avail of this option, you have to apply first through the ‘advance salary application.’ Once it is approved, you can enjoy the short-term advance loan amount and utilize it the way you want. And for your further knowledge: it indeed is interest-free.

‘Salary advance loan’ is quite adjustable as per the agreement decided by both parties, employer and employee. If you want to avail of the salary advance in July, for that you have to apply first. And after the agreement, either there will be a deduction in the next month August, or a few upcoming months as per the agreement.

Note: No law bound employers to pay salary advance loan in India as a compulsion. However, if the employer is availing this option for their employees, then there should be no discrimination based on religion, color, or race. And the employer has to stick firm with this.

To avail of the salary advance loans, do this:

• First, go to your higher-ups and have a decent professional conversation with them about your salary advance request.
• Second, write an application for this salary and submit it, after you have the conversation.
• Third, time to mention the amount [as per the salary advance format], and clear out the process of repayment, like how you are going to repay, one time or in some months.
• Fourth, it’s time to say, thanks! So send a thank you note to them.

Salary advance limit can easily vary from company to company, as they choose whether to keep this option in the first place. And when they are to decide whether to keep advance salary an option or not on the advance salary app, it’s up to them. But in most cases, the employees can avail 90% of their salary.

As per the rules given by the Indian constitution, an employer can provide an  salary in advance, if they are providing it already. But it should be free from discrimination and should comply with the agreement, both employer and employee had.