On-demand pay in hospitality: how it works and who benefits

Pay comes once a month, but expenses come whenever they like. On-demand pay lets employees draw on money they've already earned before payday. No loan and no interest.

What on-demand pay (EWA) is

EWA, or Earned Wage Access, is access to pay that has been earned but not yet paid out. Employees can see in the app how much they've earned so far this month and withdraw part of it right away. The rest of their pay arrives on the usual date, minus what they took early.

Why it matters in hospitality

• a lot of shift and seasonal work;
• many young employees with no financial cushion;
• unexpected expenses that, without EWA, end in a payday loan or an informal advance;
• high turnover, where every replacement costs the venue in hiring and training.

How to handle it in payroll

Paying out part of earned pay before payday is, in practice, an advance on wages. The Polish Labor Code allows cash advances given to an employee to be deducted from their pay (Article 87 § 1(3)), up to half of the pay and while respecting the amount that is free from deductions. That's why EWA works best combined with an HR and payroll system that settles the amounts withdrawn automatically on payday.

The Labor Code does not apply to civil-law contracts, so it's worth setting out the rules for early payouts in the contract itself.

How to introduce EWA at your venue

1. Set a limit: what percentage of earned pay can be withdrawn early.
2. Set the frequency: how often employees can draw on their funds.
3. Decide who gets access: from day one or after the probation period.
4. Connect it to payroll so your accounting team doesn't calculate advances by hand.
5. Mention it in your job ads. It's a real selling point for candidates.

What to watch out for

• EWA is no substitute for a fair wage. It's a convenience, not a raise.
• Communicate any fees for employees clearly.
• Show your team that money withdrawn early reduces what they get on payday.

This article is for information only and is not legal or tax advice. Agree on the payroll details with your accountant.