Introduction to Earned Wage Access (InstaPay)

Important

InstaPay is rebranding to Earned Wage Access (EWA). You may see both names used over the next couple of weeks as we change the name in the app and online.

EWA lets you access up to $1,000 per week from your already-earned salary, deducting any withdrawn wages in advance from your next pay.

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Introduction to Earned Wage Access (EWA)

What is Earned Wage Access (EWA)?

EWA gives you access to your money as you earn it, instead of waiting for payday, giving you greater control over your finances. It is available exclusively to employees of organisations using the Employment Hero Payroll platform, accessible through the Swag app.

When you withdraw your wages in advance through Earned Wage Access, the amount will be deducted from your next pay. This service is not a credit product and does not incur interest or late fees. Earned Wage Access amounts are limited to 50% of an employee's unpaid net pay owed, with a weekly cap of $1,000.

Important considerations:

  • Ensure you have enough funds for your financial obligations.
  • Employment Hero is not liable for any losses or financial hardship resulting from accessing your pay early.
Am I eligible for Earned Wage Access?
You can find out if you are eligible in this article.
How do I get Earned Wage Access?

Follow the instructions in our article: How do I set up Earned Wage Access?

How do I use Earned Wage Access?
You can learn how to use Earned Wage Access in this article.
What are the Earned Wage Access (EWA) fees?

There is a small fee for each Earned Wage Access transaction:

  • 1.3% of the transaction amount if you choose to have your funds sent to your Swag Wallet account.
  • 1.5% of the transaction amount if you prefer to have your funds sent to another bank account.
Will my company be notified when I access EWA?

When you access Earned Wage Access for the first time through Swag, a one-off email notification is sent to the payroll administrator of your organisation, informing them that the feature is being used.


After this initial notification, administrators can view all EWA transactions within payroll, both under the employee’s pay run inclusions and in the organisation’s pay run inclusions report. There are no additional compliance requirements for processing EWA transactions.

What are the benefits of using EWA?
EWA offers many benefits:
  • Financial Flexibility: you can access their earned wages when they need them, helping to cover unexpected expenses or emergencies without relying on high-cost loans or credit cards.

  • Reduced Financial Stress: having the ability to withdraw a portion of their earnings before payday can reduce financial anxiety, improving overall well-being and productivity.

  • Avoidance of Debt: EWA services provide an alternative to payday loans or credit options that often come with high-interest rates and fees, helping employees avoid debt cycles.

  • Improved Savings Habits: with immediate access to your already-earned funds, you may be more inclined to manage your money better, increasing financial literacy and encouraging healthier savings habits.

How is my data and financial information protected?
EWA is safeguarded by the same robust security measures used across the entire Employment Hero platform. We prioritise data protection and employ bank-level encryption standards and industry-leading technology to ensure the security and integrity of your HR data.

 

Employment Hero has also achieved ISO 27001 compliance and uses two-factor authentication (2FA) for key actions within its platform to minimise fraud risks. For more details, visit our Security Centre page on the Employment Hero website.

Will using EWA affect my credit score?
No, using Earned Wage Access (EWA) will not affect your credit score in any way. Accessing earned wages before payday is not considered a credit or payday loan product, so it will not appear on your credit report or impact your financial standing in any way.
Do I need to report accessed wages differently for tax purposes?
Earned Wage Access (EWA) does not have any tax implications for employees, as it operates within the existing tax framework.

Employer responsibility

As a Payroll manager, do I need to do any admin for Earned Wage Access?

Payroll managers do not need to do any admin. Any Earned Wage Access withdrawals are automatically deducted by Employment Hero from the next pay cycle.

See this article for detailed information about EWA from an employer and manager perspective. 

Support and help

Where do I get help regarding Earned Wage Access?

Submit a request via the Employment Hero support team. Get in touch with us here.

Is Earned Wage Access pay-day lending?
No, you get early access to your own earned wages without the need to use credit cards, Buy Now, Pay Later (BNPL), or loans. There are no interest or late fees for using Earned Wage Access. It is important to note that the Earned Wage Access transaction fee covers Swag's costs, and is not interest on your payment.

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