It refers to the short-term loan that the employer gives the employee, which gets deducted from their salary later. Not all the companies offer such benefits to the employees. As per the rules, the advance amount is deducted from the employee’s net salary. It is an interest-free benefit that the companies offer to the employee for their financial emergencies. The deduction from the salary can be processed in two types: either a whole amount is deducted from the upcoming month’s salary or partially over a few months as per the agreement between the employee and employer. Suppose the company has a policy of salary advances, it cannot be serviced based on discrimination, like gender, race, religion, or the employee’s position.
