Advance on salary and loan from the employer
1 Jun, 2002 by
What is the difference between a loan and a salary advance? Are you obliged to accept? How much do you have to advance? What if he or she has not yet worked the month in question? And what are the repayment terms? These questions need to be clarified.
Whether it's the inability to pay an unexpected bill or the desire to buy a house, employees sometimes turn to their employer for an advance or a loan. The advance on salary or the loan from the employer are distinct and do not meet the same conditions, particularly in terms of repayment.
This article discusses the following topics:
- the obligation to provide a salary advance
- maximum amount of the advance on salary
- advance on the 13th salary, commission, shares of the business or bonus
- repayment of the salary advance
- distinction between salary advance and loan from the employer
- repayment of the loan and set-off with the salary
- conditions for claiming set-off
- maximum salary deduction