Millions of salaried employees in Pakistan and other parts of the world face financial pressure between paydays. With rising living expenses and stagnant wages, the traditional payroll system that rewards employees monthly has proved less effective. This has turned into a substantial problem, especially for frontline workers in sectors like healthcare, retail, logistics, and manufacturing.
To ensure financial well-being of employees, Fintech companies have introduced Earned Wage Access (EWA) - a solution that enables workers to access a portion of their earned wage before the official payday. Many companies in the UK and United States have already adopted EWA programs to support their teams.
In 2017, Walmart partnered with Payactiv and Even to launch an Earned Wage Access program. This allowed various employees to withdraw earned wages up to eight times a year at no cost. Target and McDonald’s have also embraced similar initiatives by collaborating with various on-demand pay providers.
The current economic climate in Pakistan underscores the importance of solutions that support salaried employees. Daftarkhwan’s supercommunity member, Neem, is addressing this need by making Earned Wage Access available to Pakistani employees. Founded in 2019 by Nadeem Shaikh, Vladimira Briestenska and Naeem Zamindar, Neem is an embedded finance platform providing responsible and Shariah-compliant access to earned wages through Neem Paymenow.
According to Niran Rehman, Director at Neem Paymenow, “Our goal with Neem Paymenow is to offer a solution that provides financial relief to Pakistan's hardworking salaried workforce. Many employees we spoke to often had to borrow from friends, family, or high-interest loan sharks due to a lack of alternatives and no access to their earned wages.”
Neem Paymenow allows employees to withdraw up to 50% of their salary, bridging financial gaps before payday. The platform also promotes financial literacy, covering topics like budgeting, savings, fraud prevention, etc.
With a 4-million-dollar credit facility secured from the South African DNI group, Neem is resolved to empower Pakistani employees.
Discussing the impact of this investment, the co-founder of Neem, Naeem Zamindar stated “This partnership reflects our market potential and shared vision of enhancing financial wellness for businesses and people in Pakistan.”
According to a survey of US workers featured in Forbes, Earned Wage Access is considered a remarkable employee benefit. Respondents said “it helps them pay most of their bills on time (84%), pay off some credit card debt (67%) and put money into savings monthly (57%). Nearly two-thirds (63%) say it has had a positive impact on their perception of their employer.” For the Pakistani workforce that lives from paycheck to paycheck, EWA can potentially allow them to gain more control and flexibility over their finances. Yet the question remains: how will it ensure employee well-being and shape their financial future in the long term?
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