According to a latest announcement made by Walmart, employees will soon be able to withdraw their salary before payday using a new application.
The latest application will help the retailer’s 1.4 million workers to plan ahead for bills, savings goals and will show workers how much they can safely spend. Additionally, the application will allow employees to withdraw cash prior to a scheduled payday for up to eight times a year for free. If an employee wants to withdraw money more than eight times, then s/he will need to pay a fee.
While the company revealed that the latest move will see its workers to avoid payday loans thus provide a better way to manage their finances, critics and labor groups have said that the company doesn’t pay its workers enough. Organization United for Respect at Walmart said, “Living paycheck to paycheck is too common at Walmart and that is the problem that Walmart should be trying to solve.”
At the moment, the retailer pays $9 an hour to new workers which are over federal minimal wage but lower than those of its rivals.
Image: Flickr/Random Retail