Benefits Of Earned Wage Access - Win-win For Employees And Employers

Dr Chris Blair, group CFO at 21st Century

Earned wage access (EWA) platforms are a way to rethink how pay works. It’s not about waiting for that end-of-month lifeline anymore; it’s about accessing what you’ve already earned when you need it most. No loan sharks, no begging the boss, just your money, your rules – employers just need to get on board.

The inflation monster eating your wages

Inflation in South Africa clocked in at 5.1% in 2024, according to Stats SA, and it’s been creeping up for years (Stats SA, 2024). Approximately 54% of you are raiding your savings just to make it to payday. Others turn to loans—with 30% of monthly spending going straight to repaying unsecured credit, studies show. That’s a third of your hard-earned cash vanishing before you can enjoy it.

The National Credit Regulator’s 2023 report showed 60% of credit-active South Africans are over-indebted, juggling multiple loans with interest rates as high as 50% on just R1,000 (NCR, 2023). That’s a debt spiral: borrow mid-month to cover a gap, pay it back with next month’s wages, and then you’re broke again by week two.

Work’s suffering too—and your boss should care

This isn’t just your headache — it’s hitting your workplace hard. 21st Century’s 2024 Salary Survey found 17% of workers quit every year in search of higher salaries, costing companies a staggering R20bn to replace them.

High absenteeism spikes around payday as folks dodge loan sharks or scramble to sort out cash woes, with employers reporting staff missing work for days after. Then there’s the payroll chaos — financially stressed workers begging for advances, throwing a spanner in the works for HR.

It’s a mess, but it’s fixable. Employers who’ve cottoned on to EWA see the difference: Employers using EWA show a 25% drop in absenteeism and the same cut in those advance requests. Furthermore, over three quarters of workers say they’d switch jobs for an employer offering EWA. That’s a retention goldmine your boss can’t ignore.

Earned wage access: Your wages, your way

So, what is EWA? It’s simple: you get to tap into wages you’ve already earned, whenever you need them. No interest, no long-term debt—just a small “ATM-style” fee that’s 90% cheaper than loan sharks. Need R500 for the kids’ school transport or a quick grocery run? It’s there, fast and affordable.

But it’s not just a quick fix. This is about breaking the cycle. Responsible EWA platforms are built on researched and experienced insights, and come with a full toolkit: debt rehab programmes for when you’re drowning in loans, gamified financial education, and budgeting tools.

Beyond cash: Dignity and control

EWA isn’t just about money—it’s about dignity and creating tailor-made plans to assist employees to manage their finances and cut debt.

Employees call it “quick and easy”; employers love the seamless setup, and HR execs say it’s fostering a savings culture.

Why your boss should jump on this

Here’s the best bit: it costs your employer nothing. No risk, no admin headaches — just a happier, more productive you. It’s fast and painless to set up - it a win-win for employers and employees.

Financial stress doesn’t care if you’re a cleaner, a clerk, or a manager—it’s a thief that steals your peace, your focus, and your joy. It’s about more than money—it’s about showing up to work with your head high, not haunted by bills. It’s about saving for your kid’s future, not scrambling for tomorrow’s bus fare. That’s freedom, plain and simple.

Remuneration might not be the sexiest word, but when it’s done right—like with EWA — it’s the bedrock of a life where you’re not just scraping by. So, go on, have that chat with your boss. Kick financial stress to the curb — together.