Believing that employees should have access to wages they have already earned, PayKey is introducing Earned Wage Access (EWA) in the Philippines in partnership with banks.
Earned Wage Access (EWA) enables employees to access their salary even before payday and release their “already earned wages with a click of a button. The concept originated in the United States. However, in the Philippines, some workers are paid by the day (or arawan in Tagalog).
Employees usually receive their salary twice a month (either 10th and 25th or 15th and 30th).
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PayKey, a fintech company based in Israel, developed the end-to-end, white-labeled EWA solution that banks can offer to their corporate clients so employers can include it as an employment benefit to their Filipino workers.
“People get paid once or twice a month on payday, and it’s been like this for many years. It’s a very outdated way of looking at how salaries are paid,” said Roy Gabriel, chief innovation officer and GM of PayKey. “If they need money to pay bills and other unanticipated expenses, especially amid the new normal, they need to find another solution. They would ask for an advance from their employers, or even borrow from their family and friends, or take a loan from external lenders, which, sometimes can get stressful and painful.”
Early wage access
The solution is available through local banks which provide the payroll for organizations. PayKey said that there is no minimum company size to avail of the services as long as the bank allows it, then employers can offer it to their employees.
PayKey hopes that giving employees early access to their earned wages will keep them away from loans with steep interest rates.
PayKey works with many of the leading banks worldwide to develop a standalone app. It is now working with some of the top local banks to allow this solution to their cooperate accounts, so expect to see EWA in the Philippines early next year.
“If employees have control over their salaries through EWA, then they can handle their finances better,” PayKey said. “They would also be more encouraged to report to work and be more productive.”
Gabriel also explained that the solution serves as “a major selling point in a competitive job market” as it aids easier recruitment.
“In the Philippines, the generation is getting younger. With the coming of age of digital native generations, such as millennials and GenZs, employees now expect everything to happen fast and with just a few clicks. Integrating EWA is one great way for banks to ensure that they thrive now and, in the future,” Gabriel said.