Earned Wage Access

What Earned Wage Access is

PayMongo Earned Wage Access (EWA) gives employees access to part of the salary they have already earned, before payday. The employee requests an advance on their earned wages in the app, receives it in minutes in their PayMongo wallet, and the amount is settled through their next payroll.

Behind each advance are three parties working together: a funder that enables early access to wages employees have already earned, an employer that keeps the employee roster and attendance up to date and settles the amount at payroll, and PayMongo, which provides the app and the wallets, and handles disbursement to employees.

EWA is designed around three principles:

• Earned wages, paid early. Employees can only access salary they have already worked for, up to a limit the employer sets. It is their own pay, made available sooner, and it is settled through the next payroll, so there are no monthly bills or collections.
• Low lift for employers. Employers share their roster and apply a deduction at payroll. PayMongo handles employee onboarding, identity checks, payouts, tracking, and reconciliation.
• Payroll-settled funding. Funding partners provide the liquidity that lets wages already earned reach employees early. Every payout is limited to earned salary and settled by the employer at the next pay cycle, not collected from the employee.

Who's involved

Why employers offer EWA

• A benefit with no upfront cost. Employers don't need to set aside cash to offer EWA. Employees access wages they have already earned. A flat service fee is deducted automatically from every availment, and only the amount accessed is deducted at the next payroll.
• Fits into existing payroll. Employers share a roster once, keep it updated, and apply a deduction file each pay cycle. If PayMongo already handles your payroll, deductions are applied automatically.
• Control over the program. You choose how much of earned salary employees can access (30–70%) and which employees are eligible.
• Two ways to start. Go live through your HRIS if it's integrated with PayMongo, or set it up directly in the PayMongo Dashboard with a CSV roster upload. No engineering work needed for the direct route.

Pricing

The employer selects one bundle for its program. Each bundle sets a flat service fee per transaction, the salary cap used to compute how much employees can access, and how long the employer has to settle. Every bundle includes a dedicated customer success manager and in-app features.

Example. An employee earning ₱30,000 a month, with a 50% access limit, has earned ₱7,500 halfway through a semi-monthly cycle. They can access up to ₱3,750. If they take ₱3,000, the flat service fee is deducted automatically from that availment, and the employer deducts ₱3,000 on payday.

How the end-to-end lifecycle works

sequenceDiagram
    actor Employer
    actor Funder
    participant PayMongo
    actor Employee

    Employer->>PayMongo: Apply for EWA
    Employer->>PayMongo: Sign up, complete KYB & share company profile
    PayMongo->>Funder: Endorse employer with KYB documents & profile
    Funder-->>PayMongo: Employer pre-qualified, program limits set
    PayMongo-->>Employer: Pre-qualification result

    Employer->>PayMongo: Pick a bundle, share roster
    Funder->>PayMongo: Pre-fund wallet for the program

    PayMongo-->>Employee: Invite to EWA
    Employee->>PayMongo: Verify identity and accept terms
    Employee->>PayMongo: Request earned wages
    PayMongo->>Employee: Payout sent from funder wallet

    PayMongo-->>Employer: Deduction list for the pay cycle
    alt PayMongo is the employer's payroll disbursement partner
        Employer->>PayMongo: Approve payroll run (deduction netted automatically)
    else Employer pays payroll through another provider
        Employer->>PayMongo: Deduct and settle via pre-filled payment link on payday
    end
    PayMongo->>Funder: Funds returned to funder wallet

    PayMongo-->>Employer: Reports
    PayMongo-->>Funder: Reports and monthly fee share

The full EWA lifecycle, across all parties, looks like this:

1. Pre-qualification. An employer shows interest by applying for EWA. It then signs up with PayMongo, completes business verification (KYB), and shares its company profile, such as headcount, payroll schedule, and payroll history. With the employer's consent, PayMongo endorses the employer to the funder and shares the KYB documents submitted during PayMongo onboarding along with the company profile, so the employer doesn't have to submit them twice. The funder reviews them and confirms whether the employer qualifies for EWA and the program limits that apply. PayMongo shares the result with the employer.
2. Onboarding. Once pre-qualified, the employer picks a bundle and sets its program rules: how much of earned salary employees can access (30–70%) and the payroll calendar. The funder pre-funds its wallet for the program, which is where payouts are sent from.
3. Employee roster. The employer shares its list of eligible employees with their salary, pay schedule, and attendance, either through its HRIS or by uploading a CSV in the PayMongo Dashboard. PayMongo uses this to calculate how much each employee has earned and can access. Employees who leave are removed from the program automatically.
4. Employee sign-up. Eligible employees receive an invite by SMS or email. They verify their identity (free of charge), get a PayMongo wallet, and agree to the terms and to having the amounts they access deducted from their salary.
5. Requesting earned wages. The employee sees how much of their earned salary they can access, chooses an amount between ₱1,000 and ₱50,000, and confirms. The flat service fee is deducted automatically from the availment, and the employee sees the fee and the net amount they'll receive before confirming. Requests within the employer's limits are approved automatically.
6. Payout. The amount moves from the funder wallet to the employee's wallet right away. The employee can keep it there or send it to any bank or e-wallet via InstaPay.
7. Payroll deduction. Before each payday, PayMongo gives the employer a deduction list showing what to deduct from each employee: the total amount accessed during the cycle. If PayMongo runs the employer's payroll, deductions are applied automatically. Otherwise, the employer pays the total through a pre-filled PayMongo payment link.
8. Settlement. PayMongo matches the employer's payment to the deduction list, marks each advance settled, and returns the funds to the funder's wallet.
9. Reporting and fee settlement. Employers see advances taken, deductions due, and payment status. Funders see funds in use, settlements, fee share, and wallet balance. Each month, PayMongo reports each party's share of fees, which is then invoiced.

How the money moves

sequenceDiagram
    actor Employer
    participant PayMongo
    participant FW as Funder wallet
    participant EW as Employee wallet
    participant Bank as Employee bank / e-wallet

    Note over Employer,Bank: Payout, each time an employee accesses earned wages
    FW->>EW: Amount accessed, less the flat service fee
    EW->>Bank: Cash out via InstaPay (optional)

    Note over Employer,Bank: Settlement, on payday
    alt PayMongo disburses the employer's payroll
        Employer->>PayMongo: Payroll run, deduction netted automatically
        PayMongo->>EW: Net salary paid to employee
    else Employer pays payroll through another provider
        Employer->>PayMongo: Pay total via pre-filled payment link
    end
    PayMongo->>FW: Amount accessed returned

    Note over Employer,Bank: Fee share, monthly
    PayMongo-->>FW: Fee-share report, invoiced monthly

What you'll need to get started