Salary Advance Policy Generator

[COMPANY NAME]
SALARY ADVANCE POLICY

Version:        1.0
Effective from: [Effective date]
Owner:          [Policy owner]
Applies to:     All employees

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1. PURPOSE
A salary advance is help at a difficult moment, not a benefit and not a line of
credit. This policy sets out who can apply, for how much, and how it is recovered.

2. ELIGIBILITY
Confirmed employees with at least 6 months of continuous service may apply.
Employees serving notice are not eligible.

An employee may take no more than 1 advance in any twelve-month period,
and a previous advance must be fully repaid first.

3. AMOUNT
The maximum advance is one month's net salary, subject to an overall cap of
₹1,00,000.

4. INTEREST
Advances are interest-free.

Note that an interest-free or concessional loan from an employer is a taxable
perquisite where the outstanding balance exceeds ₹20,000, valued using the State
Bank of India's rate for that kind of loan. Loans for the medical treatment of
specified illnesses are excluded. The perquisite value is added to taxable salary.

5. REPAYMENT
The advance is recovered in equal monthly instalments over up to 6 months,
starting with the next full payroll cycle after disbursement.

Section 18(2) of the Code on Wages caps total deductions from wages at 50% in any
wage period. Where an instalment would take total deductions — including provident
fund, professional tax, insurance and any other recovery — above that limit, the
repayment period is extended so it does not. This limit cannot be waived by
agreement.

6. LEAVING THE COMPANY
Any outstanding balance becomes due on resignation or termination and is recovered
from the full and final settlement, subject to the same 50% cap on that wage
period. A balance that cannot be recovered within the cap is repayable separately,
on terms agreed in writing.

7. APPLYING
Apply in writing to human resources, stating the amount and the reason. The reason
is treated confidentially. Approval is at the company's discretion, taking account
of the circumstances, the employee's service and any previous advance.

An approved advance is recorded in a written agreement signed by the employee,
stating the amount, the instalments and the recovery terms.

8. CONFIDENTIALITY
An application and its reason are confidential to human resources and the approving
authority. They are not discussed with the employee's manager or team.

REVIEW
This policy is reviewed annually and whenever the law changes. Where anything in
it falls below a statutory entitlement, the statute applies and this policy is to
be read as amended accordingly.

Questions about this policy should be raised with the human resources team at
[Company name].