Salary and Advance Payments in IT

Salary and advance payments are always relevant for candidates for IT company staff positions. The IT specialist market is highly competitive, and companies strive to attract and retain talented employees. At the same time, the most important role is played not only by the amount of wages but also by the conditions of their payment, including the systematic and transparent processes. Job candidates and employees must be given valid salary and advance payment information to strengthen their motivation to work and trust the company.

In this article you can find the key aspects related to the payment of salaries, advances in IT companies, recommendations for recruiters to help them manage these processes effectively and increase employee satisfaction. Understanding these nuances will improve the company’s reputation as an employer and create a healthy atmosphere in the team, contributing to high productivity and employee engagement.

What is Salary and Advance Payment

A salary is remuneration for an employee’s work that the employer is obliged to pay. The terms of payment must be included in the employment contract, which must specify the days and frequency of payment of wages. The days of payment of wages are also prescribed in the contract for cash and settlement services, which the company concludes with the bank. It is necessary to plan the work of the company’s department heads with accounting and accountants with the bank.

What does the Salary Depend on

In Belarus, not only in IT companies but also in other countries, the government does not limit wages. The employer, an IT company, determines the salary depending on several factors:

The complexity of the work.
The amount of work.
The quality of the work.
Working conditions.
Employee’s qualifications.
Worked time + periods that include working hours.

The salary and advance payment amount is usually prescribed in the employment contract, which is concluded with employees.

How Often are Salaries Paid in IT

Salaries are paid in companies at least 2 times a month (as often as possible).

The days when wages are paid are defined in the collective agreement (if signed) or the employment contract. These are always specific dates of the month, such as the 5th and 25th of each month.

Sometimes, the deadline for paying wages falls on a day off or a non-working day, such as a public holiday. In this case, the salary is paid before these days. This also applies to the advance payment, which is part of the salary.

It should be noted that the violation by the head of the company of the deadlines for payment of wages (benefits) without valid reasons is the basis for the dismissal of the head.

What Kind of Payment is Called an “Advance”

An advance is one of the two mandatory parts of the salary that an employee is paid on one of the salary payment days set by the company. The advance is paid for work done in the first half of the month.

When salaries are paid more than twice a month in a company, the advance payment can include payments that employees receive before the final payroll for a certain month.

Usually, the advance is less than the main part of the salary.

There may be a Salary Provision within the company, which may include provisions on the advance amount in absolute or percentage terms, and an employee may request an increased advance for valid reasons.

How Salaries are Paid in IT Companies

In Belarus, wages are paid in Belarusian rubles. In IT companies, wages are paid in money form. Salary and an advance are usually transferred to the employee’s bank account, but it is still possible to pay wages in cash through the cashier, which is set up in the company.

Features of Advance Payment in IT Companies

The payment of an advance in IT companies in Belarus is peculiar due to the industry’s specifics and national labour standards. The country’s IT sector is actively developing, offering competitive working conditions, including the nuances of the payment system.

1. Legislative Regulation
The requirement to pay wages at least two times a month applies to all enterprises, including IT companies. The company determines the amount of the advance independently and fixes it in local documents, such as the employment contract.

2. Specifics of the IT industry
IT companies typically offer employees competitive pay terms, including additional bonuses and other compensation. This may affect the amount of the advance payment, which sometimes exceeds the usually set amount. Sometimes, IT companies practice advance payments amounting to 50% or even more of wages.

3. Payment Flexibility
IT companies often offer more flexible payment schemes, including advance payments. For example, some companies allow employees to choose what percentage of their salary they would like to receive as an advance. It is done for the convenience of employees and to improve their financial planning.

4. Accounting for Taxes and Fees
The company must pay payroll taxes on the advance amounts. As a rule, IT companies automate these processes using special accounting programs to correctly calculate taxes and deductions. It allows you to avoid mistakes and ensure timely payments.

5. Employee Motivation
Some IT companies consider advance payments a motivational tool. They may offer additional upfront payments for meeting certain goals or participating in key projects. It helps to retain talented employees and encourages them to achieve high results.

Thus, the payment of an advance in IT companies in Belarus is regulated by law, but it has its peculiarities related to industry practices. Flexibility, process automation, and a focus on employee motivation make these companies attractive employers in the labour market.

Payment of Salary and Advance Payment in IT in Belarus

How Salary and Advance Payments can Increase the Loyalty of Employees

The competition for qualified IT specialists is extremely high, so employee retention and loyalty are important success factors. Timely and fair salaries and advance payments are important in forming employees’ positive attitudes towards the company. Let’s look at how these factors can increase employee loyalty in an IT company.

Financial Stability
Stable salary payments ensure employees’ financial confidence. In the IT industry, where projects can be complex and time-consuming, specialists mustn’t be distracted by financial problems. Paying salaries on time allows employees to focus on their work tasks rather than worry about their bills.

Transparency and Trust
Transparency in remuneration matters is important in building trust between the company and employees. When a company clearly and timely informs employees about the amount and timing of payments, it creates an atmosphere of trust and openness. As a result, employees feel more confident and comfortable, which helps to increase their loyalty.

Support in Difficult Times
Paying an advance can be an important way to support employees in unforeseen situations. Life circumstances may require unplanned expenses, and the opportunity to receive an advance payment allows employees to solve financial problems without having to seek help from external creditors. It strengthens their attachment to a company that cares about the well-being of its employees.

Stimulating Productivity
When employees are confident in the timely payment of wages, this positively affects their motivation and productivity. They feel valued and needed, encouraging them to put more effort into fulfilling their responsibilities. In addition, financial stability allows them to focus on professional growth and achieving their goals.

Employee Satisfaction
Timely salary and advance payments directly affect employee satisfaction. When a company fulfils its financial obligations, it creates a positive image of the employer. Satisfied employees look less often for new opportunities in the labour market and are more committed to their current company.

Competitive Advantage
IT companies face high competition for the best staff, and the proposed working conditions can be crucial in choosing an employer. Stable salaries and advance payments make the company more attractive to potential employees. It not only helps to attract new specialists but also retain existing ones, increasing the overall loyalty of the team.

Salary and Advance Payments as a Tool for Hiring IT Specialists

Managing the hiring process of IT professionals through advance payment and salary can be an effective tool for attracting and retaining talent. Here are some recommendations for recruiters:

1. Competitive Offer

Market Analysis: Research the market salary rates for relevant IT positions. It will help you to offer competitive conditions that will attract specialists.
Transparency: Specify the salary range in the vacancies to attract candidates who match your financial capabilities.

2. Flexibility in Terms

Advance payment: Offer an advance to new employees to cover initial expenses (for example, relocation or adaptation). It is especially attractive for professionals who change their region or country of work.
Contract Signing Bonuses: Offer a one-time contract signing bonus to encourage acceptance of the offer.

3. Performance Incentives

Bonuses: Implement a bonus system related to productivity and achievement of goals to motivate employees for long-term cooperation.
Salary Negotiations: Be prepared to discuss salary by offering opportunities for renegotiation at certain intervals (for example, every 6 months).

4. Compensation Package

Additional benefits: The compensation package should include benefits such as advanced training courses, medical insurance, company stock options, or transportation expenses.
Flexible schedule: Offer remote work or flexible schedule options, which may be more important to IT professionals than a high salary.

5. Long-Term prospects

Career Plans: Present a clear career roadmap with the possibility of salary increases and expanded responsibilities.
Referral Programs: Implement referral hiring programs with bonuses so employees can recommend their colleagues and receive rewards.

These strategies will help attract and retain IT professionals, creating comfortable working conditions and opportunities for professional growth.

Conclusion

Paying salaries and an advance is a financial obligation and a powerful tool to increase employee loyalty in an IT company. Stability, transparency, support in difficult times, and overall satisfaction are key to creating a positive work environment. As a result, companies that pay due attention to these aspects receive a more motivated and loyal team, which contributes to their long-term success and development. We remind you that our specialization is the recruitment and management of IT specialists, including calculating and processing payments to employees, including advance payments and salaries.