On-Demand Pay
March 20, 2023

How does On-demand Salary assist in optimising the working capital

Vatsal Vora
Content & Marketing
Earned wage access assist in managing the working capital

Working capital optimisation is one of the core areas of financial optimization in every company, apart from the cash outflow for property and utility expenditure, salary and wages compound to the core amount of the working capital. Though working capital optimisation is practised at several levels on a quid pro quo basis, salaries and wages are often left out of the equation. Since organisations require employees, optimum working capital optimisation is seldom feasible for human resources. Hence, the working capital expands year-on-year, and another department sees a revision in its next year’s working capital.

Salary disbursement and working capital

Salary is one of the biggest components of the working capital in any organization. The composition of salaries and wages to the organisation's employees is quite significant; additionally, every organization needs cash flow to fulfil the advance salary requests submitted by their employees.

Though employers fully support advance requests, the summation in salary reserves is often unpredictable. So, despite being a reservoir of liquid cash, the salary reserve acts as a non-performing asset. Since the need for advance salary is mostly unannounced, employers face limitations in the process as many advances are requested by employees.

How to optimise Working Capital more effectively with On-Demand Salary

Re-channelization of Funds in Working Capital

With on-demand salary, the reserve in working capital for advance requests can be reduced as a third-party, earned wage access partner processes and credits salary advance requests. Thereby, companies can channel the funds to other business channels.

Direct Savings for Teams involved in Payrolls

Since earned wage access provides employees with multiple withdrawals between two paydays, the payroll processing team can align their focus on other matters, leaving processing salary advance requests to an on-demand salary partner.

Hidden Costs Involved with Advance Salary Requests

Another indirect impact of salary requests on working capital is in the form of hidden costs. Ideally in an organization, employees must submit a formal request via email to the human resource team for advance salary, the request is then evaluated, and a decision to disburse the amount is sanctioned. The finance team then asks the bank to process the payment. Usually, this process takes hours, at times days at a stretch; the employee in the need of money is stressed, and this affects his/her performance. Meanwhile, other teams are invested in the process, hence investing hours. The same time could have been utilized in other tasks at hand, resulting in efficient utilization.

These hidden costs can easily be avoided by partnering with an earned wage access and advance salary partner.

The Essence of Time

An employee usually requests advance salary from the employer when it is urgent. And, urgency is the textbook definition of “bad timing”. Conventional advance salary processing is a time-consuming task with inter-dependability on several stakeholders. Whereas, streaming advance salary through a financial wellness partner is quick, convenient and highly efficient.

Jify as your On-demand Salary Partner

Jify is a financial wellness partner working towards the aim of empowering the employed workforce by helping them build strong financial foundations for a brighter future.

One of the key offerings by Jify includes a revolutionary model of On-Demand Salary.

Employees can immediately access their earned wages for the days worked in that particular pay cycle, transfer it to their bank account or top up their Jify Salary and Benefits Card at their convenience and choice.

We provide them with the required advance without burdening the company's working capital.

This is completely interest-free for the employees.

It’s their money, made available to them anytime and anywhere.


In the end, adopting modern methods of handling and processing salary requests assists in efficient working capital optimisation. There are a few earned wage access partners in India, who provide secure salary streaming for on-demand pay as well as advance salary.

Learn more about Jify’s On-Demand Salary Solution:

Vatsal Vora
Content & Marketing

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