Payroll | How payroll teams can drive financial wellbeing with Earned Wage Access

In the current cost of living crisis, many employees are finding it harder to manage unexpected expenses between paydays.

With inflation driving up everyday costs, from groceries to utilities, financial stress is at an all time high. Research has demonstrated that nearly 40% of UK workers find financial pressure the top cause of their stress outside of work, and this stress may bleed its way into their professional performance.

Earned Wage Access has emerged to ease the financial burden many are currently facing. This innovative benefit allows employees to access their earned wages before payday, offering flexibility and reducing financial pressure. In this article, we will explore how payroll teams can best implement Earned Wage Access to support employees during times of financial hardship.

What is earned wage access?

Earned Wage Access (EWA) is a financial service that allows employees to access a portion of their wages before official payday. This can assist with unexpected expenses, such as a car breakdown or an unexpected bill, helping to alleviate financial stress by avoiding overdraft or credit card use. Often, employers will offer EWA through an external provider such as Wagestream or CloudPay, which integrate with payroll systems and employees' bank accounts. Employees can request a percentage of their earned wages early, often via an app or through the payroll platform.