Why Earned Wage Access Could Redefine The Social Contract Of Work

Forbes

7 hours ago

Arbia Smiti, CEO & Founder of Rosaly, an EWA B-Corp in France that's improving financial well-being through on-demand pay.
Since the 1960s, monthly pay has stood in France—and in much of the world—as a symbol of stability and social progress. Designed for an era of predictable employment and linear economic growth, the monthly salary once met the needs of both employers and workers.
But in today's economic reality—marked by inflation, rising financial vulnerability and the gig economy—the rigidity of that model is being challenged. I think the next social innovation is not about more pay but about better access to it.
In France, as in many countries, financial pressure is mounting. Nearly half of French workers experience bank overdrafts at least once a year. According to the latest Panorabanques data, the average overdraft is €223. The disconnect is clear: Expenses occur daily, but pay is received monthly.
While the French Labor Code technically allows for salary advances (or acomptes), this right often remains underused. Why? Because the system can be administrative, opaque and socially stigmatized—used only in emergencies, rarely encouraged by employers and poorly understood by employees.
Earned wage access (EWA) offers a new approach. By allowing employees to unlock a portion of their earned wages before payday, EWA aligns income access with real-life spending rhythms.
Unlike loans or credit-based products, EWA involves no interest, no debt and no obligation—just early access to wages already worked for. In countries like the U.S., U.K., India and Spain, the model is rapidly gaining ground. Fintech providers and HR platforms now integrate EWA seamlessly into payroll systems, creating a flexible, low-friction financial buffer for workers.
In the International Labour Organization's April 2025 global report on EWA, survey respondents indicated that:
• 52% to 85% of users reported reduced financial stress.
• 50% to 86% gained self-confidence from having flexible access to their income.
• 87% to 99% rated the speed of access as 'good' or 'very good.'
• 60% to 87% used EWA instead of more costly alternatives like payday loans or overdrafts.
The report also underlined benefits for employers: improved retention, higher productivity and reduced administrative burden linked to manual salary advance requests.
France already has the legal groundwork to support EWA: The right to a salary advance is embedded in national labor law. What's often missing is modernization—both in terms of digital infrastructure and cultural perception.
While American and British employers often offer EWA as a strategic HR benefit, many French companies still treat it as a marginal, manual exception. And yet, workers increasingly live paycheck-to-paycheck, and financial emergencies are rarely aligned with the calendar month.
Making EWA accessible through digital, automated and secure channels could unlock a transformation—one that supports employees without disrupting company cash flow or payroll operations.
Let's be clear: EWA is not a call to abandon monthly pay. It is an evolution—one that adds fluidity, not instability. When offered responsibly, with clear caps, employer oversight and zero cost for employees, EWA can become a tool for dignity and autonomy.
It also responds to broader labor market shifts like freelance work, platform economy jobs and growing demands for real-time compensation. In this context, salary flexibility is not a gimmick; it's a structural adjustment to an outdated system.
Beyond its financial function, EWA can reshape the employee experience. It signals trust, transparency and care. It lowers the psychological burden of asking for help. And it fits naturally into a broader movement toward financial wellness, inclusion and responsible compensation.
As companies compete for talent in sectors under pressure—retail, logistics, healthcare—EWA can be a differentiator. But more than a perk, it is a response to systemic friction in the way we pay for work.
For business leaders exploring EWA, the first step is to assess workforce needs:
• What percentage of your employees are hourly or shift-based?
• Are financial stress or overdraft-related absences a recurring issue?
• How many salary advance requests do your HR teams manage manually?
Next, consult your payroll provider. Many digital EWA solutions integrate with other business systems. You may want to look for platforms that provide customizable caps (e.g., 30% to 50% of salary), employer control (eligibility criteria, pause functions) and compliance with GDPR and labor laws.
Equally important: Communicate clearly. Employees need to understand this is not a loan or a credit service. Offer onboarding support and Q&A sessions, and explain how usage is tracked and protected.
While EWA offers clear benefits, implementation must be thoughtful:
• Risk Of Overuse: Without education and caps, employees might rely on advances habitually.
• Cost Transparency: Solutions must be fee-free for workers or capped at a symbolic level. Otherwise, it risks creating new financial stress.
• Regulatory Oversight: In some countries, the legal framework around EWA is still evolving. France benefits from existing provisions, but global companies must evaluate jurisdictional nuances.
• Cultural Shift: HR teams may need time to adapt their perception of EWA—not as a vulnerability signal, but as a wellness benefit.
To mitigate these risks, start with pilot programs, monitor usage behavior and gather employee feedback before full rollout. Regular reporting and HR dashboards can help track impact without micromanaging.
We no longer live in a world where the end of the month matches the end of financial need. EWA brings payroll into the 21st century.
More employers and HR leaders are starting to see EWA not as a workaround but as a lever for social progress. Because when workers gain financial breathing room, businesses often gain engagement, loyalty and resilience in return.
I don't think the future of work will be built on rigid pay cycles—it will be built on fairness, flexibility and the courage to rethink even our most established norms.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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