Salary Advance is a benefit that lets you access money you've already earned before your regular payday.
For example, if you're halfway through the month, you've already earned about half your salary, Salary Advance lets you access some of that money now instead of waiting until payday. The amount you receive is then simply deducted from your next paycheck. No interest, no fees, no loans, it's your own money!
Currently available only in Spain.
Overview
Salary Advance allows employees to request access to a portion of their already earned salary before payroll is processed.
The system automatically calculates the available amount based on salary and company rules. Payments can be processed automatically or manually through Treasury, and at the end of the month, all paid advances are consolidated and sent to Compensation as a single concept per employee.
When and why it should be used
Salary advance should be used when:
- Employees need early access to already accrued salary
- HR wants to eliminate manual email requests and spreadsheet tracking
- Finance needs a clear and traceable payment process
- The company wants better visibility and control over payroll impact
This feature reduces administrative work, avoids calculation errors, and ensures transparency for everyone involved.
How to use
For Employees: Request a salary advance
- Go to your profile in Factorial Mobile
- Navigate to Salary Advance
- Review your available balance (automatically calculated)
- Enter the amount you would like to request
- Submit your request
- You can track the status and history of your requests directly in the platform
For employees, this feature is only available on mobile.
For HR: Manage requests and rules
- Go to Benefits
- Select Salary Advance
- Review incoming requests
- Approve or reject requests as needed
If you can't see the Salary advance module:
- Your company hasn't enabled it yet, the service might still be rolling out
- You're not enrolled yet, your HR Admin may need to add you to the program
- You're a new employee, some companies have a waiting period for new hires
Reach out to your HR Admin, they can quickly check your status and let you know what's happening.
If you don't see your available balance:
- It's early in the month: you may not have accrued enough yet (balances start at zero each cycle)
- You're past the deadline, requests might be closed for this cycle
- You have pending advance, previous requests may be using up your available balance
- Missing information, your salary details might not be fully set up in the system
If none of these seem to apply, reach out to your HR Admin, they can look into your specific situation.
How is my available balance calculated?
Your available balance depends on your contract type and how your company has set things up. Here are the two methods:
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Calendar-based daily accrual (proration)
This is the standard method. Your balance grows automatically each day:Your daily earnings = Net monthly salary ÷ Days in the month
Your available balance = Daily earnings × Days worked so far + Company rules
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Approved hours (time tracking–based accrual)
This method is typically hourly contract employees. Your balance is based on the hours you've actually worked and had approved by your manager or the responsible person.Available = Approved worked hours × Your hourly rate
Important: Only hours that your manager has approved count toward your balance. So make sure to submit your timesheets regularly and follow up if approval is pending.
How is the advance deducted in payroll?
If you don’t have Compensation
- At cycle end, go to Salary Advance > Summary
- The export shows each employee and their total advance amount
- Export the report and send it to your payroll system
- Deduct the corresponding amounts in payroll
If you have Compensation
You don’t need to take any manual action. The advance amounts will be automatically available in the Compensation module as a single concept per employee, ready to be included in payroll.
How does it impact extra payments?
Regular advances are deducted from regular payroll only. For extra payments (pagas extra, bonuses, etc.):
- Advances don't accrue based on bonus amounts
- Deductions are not automatically taken from extra payments
- If there's ever an edge case (like someone on extended leave), you may need to handle it manually deactivating the employee
Requests statuses
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Pending payment
The request is approved and waiting for Finance to execute. The employee can no longer cancel it.
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In progress
Payment is being processed! The bank transfer has been initiated and should complete within minutes.
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Paid
Success! The employee has received their money. This advance will be deducted in the next payroll.
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Expired
The request wasn't processed before the deadline. No money was sent, and nothing will be deducted. The employee can try again next cycle.
Tips and best practices
- Define clear internal policies before activating the feature (maximum percentage, eligibility, frequency)
- Communicate transparently with employees about how the available balance is calculated
- Align HR and Finance teams on payment timelines
- Regularly review advance usage trends to ensure financial sustainability
FAQ
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Who can request a salary advance?
Employees eligible under the company rules defined by HR.
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How is the available amount calculated?
It is automatically calculated based on accrued salary and the company’s defined limits.
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Can HR modify or cancel a request?
Yes, HR can manage requests before payment is processed.
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Does this affect payroll?
Yes. All paid advances are consolidated and deducted in payroll as a single concept per employee at the end of the month.
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Is it deducted from net or gross salary?
From your net salary (the amount after taxes). Since you received the advance as net money, the deduction is also net. This means it doesn't affect your taxes or social contributions at all, you simply received part of your salary earlier.