PaidHR, a Nigerian HR software provider, has seen a remarkable surge in the popularity of its earned wage access (EWA) product. In 2024, the company disbursed over ₦150 million to more than 2,000 users, a staggering 5,900% increase from the previous year.

This growth is a testament to the changing landscape of employee benefits in Nigeria. With most employers paying salaries once a month, workers are increasingly seeking more flexible payment options to manage their day-to-day expenses.

PaidHR’s EWA product has filled this gap, allowing employees to access their earned wages before payday. The company’s data shows that the top three uses for these early wages are bills, transportation, and rent.

Unlike traditional credit options, EWA provides employees with access to their earned wages without the need for credit checks. This makes it a more sustainable option for managing cash flow between paydays.

However, the rise of EWA also raises concerns about financial literacy and the potential for over-reliance on early wage withdrawals.

To address these concerns, PaidHR has introduced safeguards, such as limiting employees to withdrawing no more than 50% of their accrued earnings at any time.

The company has also partnered with a financial education firm to promote responsible use of the service. This move is part of a broader shift in how Nigerian employers and employees view financial wellness.

The demand for EWA continues to grow, and PaidHR is well-positioned to meet the needs of employees and employers alike. With its innovative approach to employee benefits, the company is helping to shape the future of work in Nigeria.