Maintaining a balance sheet is one of the important things in managing family finances, especially for employees whose main income comes from monthly salaries. Expenditure allocations are usually arranged in such a way as to cover living expenses, savings, investments, children's education, insurance, and pension funds. Not only that, sometimes that income must be set aside to pay off debt installments such as mortgages or vehicles.
However, there are times when there is an urgent and large enough financial need that cannot be met from the daily operational costs that have been set out in the financial plan. If you wait long enough for the payday date, while using online loan services (borrowing) there is interest to be paid, especially if the loan is illegal, it will definitely become a burden that disrupts the family's balance sheet.
Well, there is a solution to overcome this problem which is commonly known as earned wages access ( EWA), which is a solution that allows employees to withdraw their current accumulated salary even though the payday is not yet on. Employees are not charged interest or late fees, but only transaction fees that take advantage of this service.
In simple language, EWA is an online cash payment, the difference is, EWA is given by a third party in collaboration with the company where the employee works, where this company covers the employee's financial needs before the payday date.
One of the startups that offers EWA services is PT Digital Gaji Asia (GetPaid). There are three advantages of the solution offered, namely free of charge for the company, easy to use, and control over employees. As previously mentioned, employees who use GetPaid services are only charged transaction fees, not interest like online loans.
A survey of companies using this service concluded GetPaid helps companies maintain and increase productivity. As many as 72% of company staff said they became more loyal to the company after using GetPaid. 95% of employees said they were less stressed after using GetPaid. As many as 66% of employees say they feel a little calmer after using GetPaid, and 61% say GetPaid helps with funding problems.
COO Getpaid Indonesia Hilton Lie explained, to obtain this EWA service, the company must work closely with GetPaid to ensure that the person who will use the service is an employee at the location. Later the company will provide a limit on how much funds can be disbursed before the payday date. For example in 20 days the employee has the opportunity to use the funds worth the specified limit. For example, an EWA given in the amount of Rp. 2 million, then on the 1st working day the employee may withdraw funds of Rp. 100 thousand. If the opportunity is not used, the funds will be accumulated at the next opportunity. So for example, it will be taken on the 10th working day, then the value that can be taken is Rp. 1 million.
According to Hilton, the restrictions on EWA limits and disbursement restrictions are carried out to keep the users' balance sheets safe and become part of financial management to avoid unwanted risks.
There are three options for transaction fees or admin fees. The first is 4% of the transaction value, second, a flat fee of IDR 36 thousand for each transaction regardless of the value taken. Third, amounting to Rp. 76 thousand for a month. "This is what distinguishes us from similar companies that usually only provide one option for fees ," said Hilton.
Indeed, Hilton acknowledged, this EWA service still requires education to the public, because apart from the use of technology, in the minds of the public the services offered by GetPaid are considered similar to online loans (borrowing). “The problem is education, the mindset is still KTA or borrowed. So we continue to educate in the field,” said Hilton at the HR Gathering in Jakarta (16/6).
Getpaid Indonesia Regional Director Joses Tjohjono said, the HR Gathering with the theme "Understanding the Needs of Employees with Getpaid" is a means to stay in touch and exchange information between GetPaid and HR employees from several companies. "It is hoped that this meeting can create synergies to provide welfare facilities so that employees can be more productive at work. I hope that by utilizing the EWA service facility, it can help employees' financial problems, and avoid the snares of illegal online loans," he said when giving his speech.
The HR Gathering was attended by several companies, including Nityo Infotech, Ninja Express, Harapan Baru Lidya, Optik Tunggal, Agro Tech, Advance Mediacare Corpora, Sinar Selaras Rezeki, Bithour, Hello Kreasi Pratama, Plastech Indonesia, Maximus Makmur Medika, and Surya Creation.
Getpaid does not target a specific company segment in marketing its services, but any company that really wants to provide convenience and financial solutions to its employees with the EWA model. Currently, there are around 20 companies that have collaborated with GetPaid Indonesia.
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