Guide
What is earned wage access?
Earned wage access lets you withdraw part of the pay you’ve already earned, before payday. It works through your employer’s payroll, and it isn’t a loan.
By [Author — Gary to supply]Reviewed by [Reviewer]Updated
$600
Earned so far$1,200
Key points
- Earned wage access (EWA) lets you withdraw pay you’ve already earned, before payday.
- It runs through your employer’s payroll, so what you withdraw comes out of your next pay automatically.
- It isn’t a loan: you’re accessing your own wages, not borrowing.
- With CashD, you can access up to 50% of your earned pay for a 1.99% fee, with no interest and no credit check.
Earned wage access, explained
If you’re paid weekly, fortnightly or monthly, you’re paid in arrears: by payday, you’ve already done the work. Earned wage access closes that gap. It lets you draw on the wages you’ve earned so far this pay period, when you need them.
Employers offer it as a staff benefit. With CashD, it costs them nothing to run and doesn’t touch their cashflow.
How it works
With CashD, it takes four steps:
- Your employer connects CashD to their payroll or HR software.
- You download the app and see what you’ve earned so far, in real time.
- You withdraw up to 50% of it, and it lands in your bank account.
- On payday, the amount and the fee come out through payroll. The rest of your pay arrives as usual.
For example, say you earn $25 an hour and work 80 hours a fortnight. Halfway through, you’ve earned $1,000, so up to $500 is available. Withdraw $200 and the fee is $3.98. On payday, $203.98 comes out of your $2,000 pay.
What it costs
Providers charge in different ways: a fixed fee for each withdrawal, a percentage of what you withdraw, and some add interest or processing fees. Some employers pay the fee for their staff.
CashD charges one fee of 1.99% per withdrawal. No interest and no late fees. Some employers cover it for you.
Source: Moneysmart, pay advance services, [DATE].
Is earned wage access a loan?
No. A loan gives you money you haven’t earned yet and charges you to pay it back. Earned wage access gives you early access to money you have earned. With CashD there’s no interest, no credit check and nothing to default on.
Watch the names, though. Some apps that call themselves pay advances lend to you directly, often for a percentage fee. Moneysmart treats them separately from services that work through your employer.
Source: Moneysmart, [DATE].
How it compares
How CashD stacks up against the other ways to cover a bill before payday:
- CashD vs payday loansCredit with a 20% fee, against your own pay
- CashD vs early wage accessPay advance apps that lend to you directly
- CashD vs credit cardsInterest if you don’t pay it off in full
Benefits, and what to watch
Benefits
- Cover a bill when it lands, not when payday does.
- Skip late fees and pricier credit.
- No interest, no credit check, nothing to repay.
Worth knowing
- It brings pay forward, so your next pay is smaller.
- If you’re short every pay cycle, a free financial counsellor can help: 1800 007 007.
For employers
Earned wage access is a benefit your team will actually use. CashD connects to the payroll and HR software you already run, costs nothing to run and has no impact on your cashflow.
FAQs
Questions people ask about earned wage access.
Is earned wage access a loan?
No. CashD is earned wage access: you’re drawing wages you’ve already earned. There’s no interest, no credit check and nothing to default on.
How much of my pay can I access?
With CashD, up to 50% of the pay you’ve earned so far in the pay period.
What does it cost?
One fee of 1.99% per withdrawal: $3.98 on $200. No interest and no late fees. Some employers cover it for you.
Will it affect my credit rating?
No. There’s no credit check to use CashD and no impact on your credit rating.
Does it show on my payslip?
Yes. What you withdrew and the fee come out through payroll on payday. The rest of your pay arrives as usual.
Check my employer
See if your employer is with CashD.
Tell us where you work. If your employer isn’t signed up yet, we’ll contact them for you and keep you updated.
- No credit check
- We never need access to your bank
- Up to 50% of your earned pay, instantly
- One small fee of 1.99% per withdrawal