The Advance Salary feature in HRStop allows organisations to provide employees with a portion of their salary before the regular payroll cycle. This helps address employee financial needs while maintaining systematic tracking and recovery of the amount through automatic payroll deductions.
This article explains how to configure, manage, and process Advance Salary requests within HRStop, along with important settings and best practices to ensure smooth and compliant operations.
What Is Advance Salary?
Advance Salary refers to a prepayment made to an employee before the payroll run. Once disbursed, this amount is automatically deducted from the employee’s salary during the payroll process for the applicable month.
By using HRStop’s integrated module, organizations can manage advance salary requests, approvals, and repayments seamlessly—without manual tracking or external records.
Key Benefits of the Advance Salary Module
- Ensures transparent advance payment management
- Automates recovery during payroll processing
- Maintains complete records of approvals and repayments
- Reduces manual follow-ups between HR, Finance, and Managers
- Allows employees to raise requests directly from their self-service portal
Configuring Advance Salary Settings
To start using the Advance Salary module, administrators must enable and configure the required options within the system.
Step 1: Enable the Advance Salary Module
- Navigate to: Control Panel → Settings → Payroll
-
Enable the following options:
- ✅ Advance Salary
- ✅ Loans (these options will be automatically available in the Control Panel)
- Click Save Settings
Once enabled, you can further configure detailed settings by clicking on Click Here within the Payroll settings page.
Step 2: Configure Advance Salary Rules
In this section, you can define organizational policies and restrictions for advance salary eligibility and repayment.
| Setting | Description | Example |
|---|---|---|
| Require minimum tenure in the organization | Specify how long an employee must have served before being eligible to request an advance. | “2 - 6 - 0” → Employee must complete 2 Years, 6 Months, 0 Days. |
| Maximum advance allowed (% of Gross Salary) | Define the maximum percentage of gross salary an employee can request as advance. | 50% of ₹40,000 gross → ₹20,000 advance. |
| Minimum day in month to apply for advance | Employees can apply only after this day of the month. Requests before this day will be restricted. | “10” → Employees can apply from the 10th of each month. |
| Block new advance if outstanding amount exists | Prevents a new advance if a previous advance remains unpaid. | If ₹5,000 is pending, the system blocks a new request. |
| Advance repayment: Deduct entire amount next month | Automatically deducts the entire advance from the next payroll cycle. | ₹12,000 advance → ₹12,000 recovered next month. |
| Maximum advances allowed per financial year | Sets the total number of advances an employee can request in one financial year. | “2” → Two advances allowed between April 1 and March 31. |
Once these configurations are set, the Advance Salary module becomes fully active and available for use within your organization.
Step 3: Configure Module Visibility for Employees
- Enable Advance Salary module visibility for employees.
-
Once enabled, employees can raise advance salary requests through their
Self-Service Portal → Compensation → Advance Salary.
Note: Authorized admins will always have access to this feature through the Control Panel, even if employee visibility is disabled.
Step 4: Allow Managers to Approve Requests
To include managerial approvals in the process:
- Enable Allow Managers to Approve Advance Salary Requests.
- This allows managers to review and approve or reject requests from their reportees before the admin processes payment.
Adding or Processing Advance Salary Requests
Once the module is configured, admins can manage or process advance salary requests either raised by employees or created manually.
Step 1: Navigate to the Advance Salary Module
Go to:
Control Panel → Payroll → Advance Salary
This page displays a list of all existing advance salary records, along with their current status and actions.
Step 2: Add a New Advance Salary
- Click on Pay Advance
- Select the Employee
-
Enter the required details:
- Advance Amount
- Disbursal Date
- Remarks (optional)
- Click Submit
Step 3: Manage Advance Salary Transactions
Once the advance has been created, several management actions are available under the Action column.
| Action | Description |
|---|---|
| Mark as Disbursed | Update the disbursal date and confirm that the payment has been made. |
| Mark as Repaid | Mark the transaction as repaid once the payroll deduction has occurred. |
| Mark as Approved | Approve the advance request for final processing. |
| Delete | Remove an incorrect or invalid record from the list. |
The Disbursal Date defines the month in which repayment will be automatically deducted during payroll processing.
Workflow Summary
- Employee raises a request → (if enabled) Manager reviews and approves → Admin approves and disburses.
- Admin marks the record as Disbursed once payment is made.
- On the next Payroll Run, HRStop automatically deducts the repayment amount from the employee’s salary.
- After successful deduction, the record can be marked as Repaid.
Best Practices
✅ Define clear eligibility and repayment rules before enabling the module.
✅ Enable managerial approvals for better control and transparency.
✅ Regularly review pending or unrecovered advances.
✅ Maintain consistent communication with employees regarding repayment dates.
✅ Test the configuration once before applying it to live payrolls.
Summary
The Advance Salary module in HRStop streamlines the process of granting, tracking, and recovering advance payments made to employees. With configurable settings, automated deductions, and role-based approvals, it enables HR and Finance teams to manage advance payments with full transparency and accuracy.
By enabling this feature, organizations can balance employee support with operational efficiency—ensuring both flexibility for employees and compliance for the business.