Sr. Hr Manager
Hr Executive At Navjyoti

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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.

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, 4167 views)

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.

what is the current rule for payment of contract employee . if the contractor are pay cash amount of his employee and the contractor are deducted this advance amount in employee salary and balance are paid in employee SB/Salary Ac. its are legal mode of salary payment. please tell me whats is correct
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