Use this as a starting point and adjust the numbers to your company. Keep the final policy short enough that employees actually read it.

Purpose

To support employees facing genuine short-term financial needs, with clear rules applied the same way to everyone.

Eligibility

  • Confirmed employees who have completed probation.
  • No more than one active advance or loan at a time.

Limits

  • Salary advance: up to one month's net pay.
  • Loan: up to a fixed multiple of monthly gross, approved by HR and the reporting manager.

Recovery

  • Recovered through payroll in equal monthly instalments.
  • An instalment may be skipped or put on hold once a year on request, with approval.
  • Early closure is allowed at any time without charge.

On exit

Any outstanding balance is recovered from the full and final settlement.

Records

Every loan, its schedule and each recovery is recorded in the payroll system and shown on the payslip.