PayPal today announced it is partnering with EarlySalary, an India-based financial wellness platform offering salaried employees instant cash advances against earned salary. EarlySalary calculates the amount an employee earns every day and enables them to withdraw a percentage of that during a specified withdrawal window each calendar month. An employee can choose the amount they want to withdraw up to the monthly percentage cap, and instantly deposit it to their bank account offering them better financial flexibility.
Speaking on the partnership, Jayanthi Vaidyanathan, Senior Director and Head HR, PayPal India said, “We’re committed to using our platform to democratize financial services and improve financial health – breaking down barriers and making it easier for people to manage their financial lives and pursue their dreams. We have partnered with EarlySalary to offer employees the flexibility of accessing their salary to navigate cash flow challenges, stay on budget, build financial resilience and reach their long-term savings goals.”
PayPal launched its employee financial wellness initiative after conducting an assessment in 2018 that examined the financial wellness of its entry-level employees. The company found that despite market pay alignment, many employees were still struggling to pay their bills each month. In response to those findings, PayPal took immediate action to address these issues with the goal of increasing its employees’ net disposable income (NDI). Net disposable income is the calculation of the financial amount left after paying taxes and necessary living expenses.
At the start of 2020, the company rolled out a comprehensive financial health program that included making every employee a shareholder, raising wages and offering new financial learning and counseling programs. A few months into the pandemic, the financial health of its employees because even more critical and the company continued to institute new policies and benefits to continue supporting its employees. Equivalent early wage access benefits have also been rolled out across markets in the U.S., UK, and Ireland.