Apply for salary advance and receive money immediately
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What is a salary advance?
With a salary advance, you borrow your salary from your employer before the planned date. To get approval, you usually state the reason for your financial bottleneck and agree a repayment plan with your company.
You should always record the pay out and the agreed repayment in writing in an agreement. This protects both sides. The repayment is usually made with the next salary, with the vacation or Christmas bonus or in installments.
Important: Make sure that an advance salary payment is also subject to tax and social security contributions. If you are paid out more money, this can lead to a higher tax burden for that month.
Do I have the right to a salary advance?
No, there is no legal obligation for employers to pay out your salary in advance. However, depending on the company, there may be a company agreement with a corresponding regulation.
How is a salary advance processed?
Before you ask your employer for an advance payment of your salary, you should think carefully about whether you want to take this step. Think about whether this solution is the best for your financial difficulties. There are also alternatives to borrowing money for 1 month.
If you are sure that you want to ask for an advance salary payment, the procedure is usually as follows:
Contact the HR department or your direct superior. In a private conversation, explain the reason for your desired advance payment.
In larger companies, you can usually obtain the necessary documents from the HR department. You may also have to submit a written application first. In this application, you state the desired amount and indicate when and in what form you would like to repay the borrowed money.
The management will decide whether to approve an advance payment.
Payment is usually made with the next salary, but you can also agree a different date for your payout if required.
Depending on the employer, different repayment options are possible. In most cases, the money is repaid with the next salary. In some cases, however, payment in installments can also be agreed. Part of your salary will then be withheld from subsequent salary payments.
Do I have to pay interest on the repayment of an advance salary?
Your employer may charge you interest on the repayment. However, this is not usually the case, as the company often gives you the advance transfer of your salary as a gesture of goodwill. It is therefore more of a concession from your employer than a conventional loan.
However, if your advance payment is a large amount that you have to pay back over many months, your employer may charge interest, as they could otherwise suffer financial loss. However, this is more of an employer loan than a salary advance.
What are the requirements for a salary advance?
The requirements may vary depending on the company. In principle, however, you can observe the following points:
Length of employment: Before you can receive an advance salary payment, you should usually have been employed by the company for some time. This is because your employer must be able to trust you when you receive an advance payment.
Reliability: If your superiors know that you are a loyal and conscientious employee, your chances of being accepted increase.
Economic opportunities: If the company is in a difficult economic situation, it could reject your request for this reason.
Frequency of advance payments: If you constantly ask for advance payments, your employer may become suspicious. You should only use this option in emergencies.
Amount: If the amount you need can be covered by your next salary or overtime, your employer will be more willing to give you an advance payment.
Reason for your request: Of course, it is important for the employer that you give an important and comprehensible reason for your request.
Check your contracts: Your employment contract or certain sales or collective agreements sometimes contain provisions on advance salary payments. If these are excluded from the outset, you should not make a request.
What is an important reason for an advance salary payment?
Of course, the reasons for financial emergencies are very individual. Below you will find examples that might be easy for your employer to understand.
Sudden repairs: Urgent repairs to your car or house can be a major burden. Employers will probably understand that you urgently need your vehicle or washing machine, for example.
Medical expenses: If you suddenly have to pay a sum of money for medical treatment or emergencies that are not covered by health insurance, your employer will certainly understand.
Wedding costs: Some employers will understand this financial burden.
Birth of a child: It's easy for most people to understand that urgent purchases need to be made after the birth of your child.
Education costs: If high costs suddenly arise for a ski course for the children or similar, this can quickly tear a hole in the budget. In this case, employers will probably understand the short-term need to bridge the gap.
Family emergencies: If you have to travel due to a family emergency, this is a valid reason for a financial emergency. Your employer may also understand your situation in this case.
How much money can I get as a salary advance?
There is no specific amount that is generally accepted. As a rule, however, employers lend a portion of the next month's salary as a bridging loan. This allows you to bridge your financial bottleneck and pay off your debt with your next salary.
What advantages and disadvantages do I have?
Applying for a salary advance can make sense if you have a good relationship of trust with your employer. There are various points you should consider before choosing this option for bridging the gap.
ADVANTAGES | DISADVANTAGES |
|---|---|
Rapid liquidity | Pressure to repay (e.g. obligation to work extra hours) |
Generally no interest | Possible negative influence on future promotions |
Flexibility | Reduced future income |
Frequently asked questions
Is a salary advance noted in the Schufa / KSV?
No, a salary advance is usually an agreement directly between you and your employer. There is therefore usually no entry in a debt register.
How quickly can I get an advance on my salary?
This depends entirely on the company and the corporate culture. In some cases, you can get your advance immediately.
Can I also have my salary advance paid out in cash?
This payment option is rather unusual, but not impossible. As a rule, your advance payment will be transferred to your deposited salary account. If you need cash immediately and have collateral, a pawn loan may be a better solution for you.
What alternatives are there?
There are many different solutions for short-term bridging. For example, you can set up an overdraft facility at the bank or take out a pawn loan.