Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Loans Earned Wage Access: What It Is and How It Benefits Both Employers and Employees Updated Apr 15, 2025 4-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Megan Hanna Written by Megan Hanna Expertise: Personal loans, home loans, credit cards, banking, business loans Dr. Megan Hanna is a finance writer with more than 20 years of experience in finance, accounting, and banking. She spent 13 years in commercial banking in roles of increasing responsibility related to lending. She also teaches college classes about finance and accounting. Learn more about Megan Hanna Reviewed by Crystal Rau, CFP® Reviewed by Crystal Rau, CFP® Expertise: Equity compensation, oil & gas investments, education planning, investment planning, student loan planning, retirement Crystal Rau, CFP®, CRPC®, AAMS®, is a certified financial planner based out of Midland, Texas. She is the founder of Beyond Balanced Financial Planning, a fee-only registered investment advisor that helps young professionals and families balance living their ideal lives and being good stewards of their finances. Learn more about Crystal Rau, CFP® Earned wage access (EWA) gives employees early access to wages they’ve already earned—before payday. It’s not a loan, so there’s no interest, no debt, and no credit check. Just faster access to money you’ve worked for. For employers, EWA is an increasingly popular benefit. It helps reduce employee stress and turnover while boosting satisfaction, without the high cost of traditional benefits. The catch? Your employer must participate for you to gain access to these programs. If your employer doesn’t offer EWA, check out our guide to cash advance apps instead. Table of Contents How does earned wage access work? EWA vs. cash advance Compare the top earned wage access apps Why earned wage access matters for employees and employers For employees For employers What to watch out for with EWA FAQ How does earned wage access work? EWA apps connect directly with your payroll or time-tracking system to calculate your available earnings. Employees then request part of their earned wages through an app or portal. The advance is automatically deducted from their next paycheck. Here’s a quick look at how it works: Log in to the EWA app. Most apps are offered by your employer. See your available earnings. This is based on hours worked or accrued wages. Request a transfer. The money goes directly to your bank account. Repayment is automatic. On payday, your employer deducts the advance from your check. EWA vs. cash advance Here’s how EWA differs from cash advance apps: FeatureEarned wage access appsCash advance appsTied to payroll?YesYesDebt incurred?NoSometimesRepayment methodAutomatic deduction from paycheckBank withdrawal or scheduled paymentFees or interestLow to moderate fees, no interestSubscription or transfer fees, no interestEmployer required?UsuallyNo Compare the top earned wage access apps Here’s how the best EWA apps stack up: Company Best for… Rating (0-5) 4.9 Get Cash Best Overall 4.9 Get Cash 4.6 Learn More Best for Employee Financial Wellness 4.6 Learn More 4.4 Get Cash Best Employer Reporting Tools 4.4 Get Cash 4.5 Get Cash Best for No Employee Fees 4.5 Get Cash 4.5 Get Cash Best Data Security 4.5 Get Cash Tip If you don’t know whether your employer offers EWA, ask your HR or payroll department. Some programs may not advertise it prominently but are available as a benefit. Why earned wage access matters for employees and employers For employees Avoid payday loans and late fees. EWA gives you access to your money when you need it, often at a lower cost than short-term loans. Improve budgeting. With features like low-balance alerts and real-time earnings tracking, EWA can help reduce financial stress. Get paid on your schedule. Whether it’s rent or groceries, EWA helps when bills don’t line up with payday. For employers Reduce turnover. One survey found 89% of workers would stay longer at a job that offers EWA. Enhance recruitment. Offering instant pay access can set your company apart, especially in hourly or shift-based industries. Affordable benefit. EWA services are often low-cost for employers and easy to integrate with payroll systems. What to watch out for with EWA EWA isn’t risk-free. Here’s what to consider before using it—or offering it as an employer: Fees can add up. Some apps charge per transfer, and only a few employers cover those costs. Frequent use can shrink your paycheck fast. It’s easy to become dependent. If you pull from your next paycheck regularly, you could end up short when payday arrives. Privacy concerns. Some apps require access to your work email, GPS, or banking details. Make sure you understand how your data is protected. Early access to wages can be a helpful tool—especially for those living paycheck to paycheck. But unless you’re extremely disciplined, it can become a cycle that’s hard to break. A better long-term option? Use a credit card you pay off in full to avoid fees or interest. Crystal, CFP® Crystal Rau , CFP® FAQ How can earned wage access affect budgeting? It can help cover urgent expenses and reduce stress, but frequent use may make budgeting harder over time. You’ll take home less on payday, so plan ahead and track your spending closely. Are fees associated with earned wage access apps? Yes. Some apps charge per transaction, offer tipping models, or charge for instant transfers. A few employers cover these costs, but many do not. Who regulates earned wage access? EWA providers are subject to federal labor laws and state-specific guidelines. As EWA becomes more popular, regulators are focusing on transparency, consumer protection, and fair pricing. What should employers look for in an EWA provider? Look for clear fees, strong data security, easy payroll integration, and employee education tools. Choosing a provider that supports responsible use is crucial. (The ones we included above do this.)