Salary Advance Policy - hr executive.. CiteHR

sowjanyakudikala Started The Discussion:

I have been working as HR Executive in a Warehousing company, where many of the employees ask for salary Advance, so we would like to draft a salary advance policy for our company..Need some suggestions to frame the salary advance policy.


jeshkan -  Member Since: Sep 2009
Hi Sowjanya,

I am sharing you the policy on Salary advance which has been drafted by me. Read through the same carefully, please do some required corrections/changes based your company policy and need, then implement the same if your management is ok.


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File Type: docx Salary Advance policy.docx (42.2 KB, 815 views)
ashok_32 -  Member Since: Jun 2011
Dear Sir, Nice procedure every one can follow the rules.... Thanks & Regards, Ashok

dixonjose02 -  Member Since: Sep 2009
In my view, advance against salary needs to be avoided as far as possible. We run retail stores, where about 5000 people work, at relatively moderate salary but we dont follow any advance policy. Some of reasons against advance policy could be:
1. It creates a "advance culture" in the org. Say, 1 employee takes advance, others also follow, with or without any cause.
2. HR/personnel deptt gets bogged down by paper processing task & it may lead to corrupt practices as well, like HR guy taking a cut to clear advance request, etc.
3. Recovery of advance, in case of sudden abondonment, can cause loss to org.

Yes, we do consider extreme cases of medical emergencies & clear it on merits of case. Such cases may not be more than a 5 in a year.


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