🎯 Objective
This article explains how the available amount is calculated in the On-demand pay module.
You will find the calculation formula used by the system, how the net/gross ratio is calculated, and several concrete examples illustrating the most common situations.
The article also presents the main factors that may affect the available amount, such as unpaid absences, an administrative third-party garnishment (ATD), a change in base salary, the number of days worked, or certain specific payroll situations.
⚙️Formulas
✅ Formula for calculating the available amount
The available amount is used to estimate the remaining employer cost to be incurred over the current month, based on data from the previous month (M-1).
The calculation is based on the following formula:
Available amount = Base salary M × Ratio M-1 × (Days worked / 30)
✅ How the net/gross ratio is calculated
The M-1 ratio is the ratio between the net salary received over the previous month and the gross salary for the same month.
Ratio M-1 = Net salary M-1 / Gross salary M-1
📌 Note:
In the case of an administrative third-party garnishment (ATD), the net salary used to calculate the ratio is the after-tax net amount actually paid to the employee.
🧮Calculation examples
The examples below illustrate how the available amount calculation works in different payroll situations.
✅ Example 1: Basic case
Base salary M: €2,000
Gross salary M-1: €2,000
Net salary M-1: €1,500
Ratio calculation:
Ratio M-1 = 1,500 / 2,000 = 0.75
Available amount:
On the 15th of the month: 2,000 × 0.75 × (15 / 30) = €750
On the 10th of the month: 2,000 × 0.75 × (10 / 30) = €500
✅ Example 2: Case following an ATD* of €500 on M-1
*Notice to Third-Party Holder: a procedure allowing the tax authority to directly seize a sum owed in order to recover a debt.
Base salary M: €2,000
Gross salary M-1: €2,000
Net salary M-1 after ATD: €1,000
Ratio calculation:
Ratio M-1 = 1,000 / 2,000 = 0.50
Available amount:
On the 15th of the month: 2,000 × 0.50 × (15 / 30) = €500
On the 10th of the month: 2,000 × 0.50 × (10 / 30) = €250
✅ Example 3: Case following a €200 raise
Base salary M: €2,200
Gross salary M-1: €2,000
Net salary M-1: €1,500
Ratio calculation:
Ratio M-1 = 1,500 / 2,000 = 0.75
Available amount :
On the 15th of the month: 2,200 × 0.75 × (15 / 30) = €825
On the 10th of the month: 2,200 × 0.75 × (10 / 30) = €550
✅ Example 4: Contract start on the 25th of the previous month
Base salary M: €2,000
Gross salary M-1: €333 (5 days worked)
Net salary M-1: €250 (5 days worked)
Ratio calculation:
Ratio M-1 = 250 / 333 ≈ 0.75
Unpaid absence declared between the 1st and the 10th of month M: 3 days
Available amount:
On the 15th of the month: 2,000 × 0.75 × (15 / 30) = €750
On the 10th of the month: 2,000 × 0.75 × (10 / 30) = €500
✅ Example 5: Case with unpaid absences
Base salary M: €2,000
Gross salary M-1: €2,000
Net salary M-1: €1,500
Ratio calculation:
Ratio M-1 = 1,500 / 2,000 = 0.75
Unpaid absence declared between the 1st and the 10th of month M: 3 days
The number of days taken into account for the calculation is reduced to reflect the absence.
Available amount:
On the 15th of the month: 2,000 × 0.75 × (12 / 30) = €600
On the 10th of the month: 2,000 × 0.75 × (7 / 30) = €350
💳 Available amount for the employee and payment account balance
The available amount calculated for the employee (see formula above) corresponds to their individual limit. However, this limit is only accessible if the company's payment account balance can fully cover it, regardless of the amount the employee actually wants to request.
✅ Example 6: Insufficient payment account balance
Base salary M: €3,000
Ratio M-1: 0.50 (employee limit: €1,500)
Company payment account balance: €1,200
The balance (€1,200) is lower than the employee's limit (€1,500): access to the on-demand pay request is unavailable for this employee, even if they want to request an amount below the balance (for example €100).
📌 Note:
The available amount is a dynamic estimate calculated automatically from payroll data. It is based on three main elements:
- The base salary for the current month.
- The net/gross ratio calculated from the payslip of the previous month (M-1).
- The number of days worked taken into account at the time of the request.
The available amount may change throughout the month depending on the employee's situation. It is notably affected by:
- the monthly recalculation of the M-1 ratio based on actual data from the previous payslip;
- payroll events affecting the net salary (ATD, unpaid absences, partial activity, etc.);
- an increase or decrease in the base salary for the current month;
- the number of days worked used for the calculation.
This method automatically adapts the available amount to the employee's actual situation while ensuring a calculation consistent with payroll data.
This available amount remains distinct from the company's Payment account balance. For the employee to access their advance request, this balance must be sufficient to cover their full individual cap — and not only the amount they actually intend to request. If the balance is lower than this cap, access to the request is unavailable for that employee, even for a smaller amount (see Example 6).