Salary Advance Policy

1. Staff compensation, including salary, benefits and allowances are designed to meet
normal living requirements of staff members and their dependents. When exceptional
and unexpected situations occur and additional monies are needed, UNDP may extend
an advance under specific circumstances and conditions defined in this Policy.

2. As UNDP is not a financial (lending) institution, staff members are advised to approach
available lending institutions such as banks or the United Nations Federal Credit Union
(UNFCU) for all personal financial needs.

3. This policy implements Staff Rule 3.16.

Applicability

4. Staff members holding Permanent, Fixed-term and Temporary Appointments, as well as

holders of Regular International and National Personnel Services Agreements (IPSAs and
NPSAs) may request, and UNDP may grant, a salary advance in accordance with the
conditions described below. Unless specified otherwise, the terms and conditions
related to salary advances apply to all personnel types listed above.

General Conditions

5. The following conditions apply to all salary advances:

(a) they are recovered in full through regular payroll deductions;

(b) advances for internationally recruited staff members and IPSAs are always
recovered in USD. Such advances can be disbursed in the local currency of the
duty station. Where an advance is paid out in a currency other than USD, the
amount of that advance will be converted to USD at the official UN exchange
rate in effect when the advance was issued, and that USD amount is what will be
recovered;

(c) locally-recruited staff members and NPSAs can only receive advances in the
currency in which their salary is paid and the advance must be repaid in the
same currency;

(d) recovery begins with the first end-month pay day after the advance has been
given unless otherwise stipulated at the time of the approval;

Page 1 of 7 Effective Date: 30/12/1899 Version #: 4

 (e) unless otherwise specified, they are liquidated at a constant rate of up to a
maximum of twelve (12) consecutive pay periods not extending beyond the
expiry date of the appointment / agreement;

(f) no new advances may be granted while a previous advance or any part thereof
is outstanding, except:

i) for advances for major medical expenses pending reimbursement by a

UN medical insurance scheme; or

ii) if based on security determinations and approved duty station-wide in

accordance with the UNDSS Security Manual; or

iii) for advances exceptionally approved in specific emergency situations

by the Assistant Administrator and Director, BMS.

(g) the request for an advance must explain, in detail, the exceptional and
unexpected situation for which the funds are needed and attach supporting
documentation. It must also include a written undertaking that if the staff
member / PSA holder separates from service, any outstanding balance of an
advance is recovered in full against final emoluments. Any balance that
exceeds the final emoluments due must be paid immediately and in full prior
to separation.

Authorization of Salary Advances and Responsibility for Recovery

6. Requests for salary advances by locally recruited staff members and NPSAs outside of
Headquarters (HQ) must be submitted using UNDP’s employee self-service platform
along with the necessary documentation as required under this Policy. The request is
reviewed and approved by staff designated with these roles in the Office. Typically, the
Approver role is with the Head of Office (Resident Representative) who may delegate it
to the Deputy Resident Representative (operations) or a similar function.

7. For locally recruited staff members and NPSAs at HQ, advances must be approved by the
Director of the relevant office, who may delegate to the Deputy Director, or similar
function.

8. The Office approving the advance is responsible for ensuring that the payment is being
made and recovered in line with this Policy. The Assistant Administrator and Director,
BMS may revoke the delegation of authority of the Head of Office, or Director of the
staff member’s office, to approve salary advances if advances are approved in breach of
this policy.

Page 2 of 7 Effective Date: 30/12/1899 Version #: 4

 9. Except for personal emergency advances, salary advances of internationally recruited
staff members and IPSAs, must be approved by both the Global Payroll Services (GPS)
and Benefits & Entitlement Services (BES) Manager. The GPS and BES Managers are
responsible for ensuring that all salary advances are approved and recovered within the
framework of this policy. In the case of personal emergency advances, the Assistant
Administrator and Director, BMS must approve the salary advance.

Types of Salary Advances

Advances upon initial appointment

10. Where a staff member / PSA holder has not yet been enrolled in active payroll in
Quantum HCM, a one-time initial appointment advance may be granted. Should a
duplicate payment be disbursed, a recovery will be made in full in the next payroll.

Advances due to non-receipt of salary

11. Where a staff member / PSA holder does not receive a regular salary due to a banking or
other technical issue or a partial first month salary due to timing of payroll processing,
an advance shall be granted in the amount due. Should a duplicate salary be disbursed,
a recovery will be made in full in the next payroll.

Advances upon separation from service

12. Where a staff member / PSA holder separates from service and final settlement of pay
accounts cannot be made at the time of departure, an advance not exceeding 80 per
cent of estimated final net payments due may be granted.

Advances for medical expenses

13. A staff member / PSA holder may, exceptionally, request a salary advance for major
and unforeseen medical expenses incurred by them or a dependent recognized by
UNDP. Request for such advances will be considered only if (i) the staff member / PSA
holder, including the named dependent, are enrolled in an official UN medical Plan, (ii)
direct billing/payment facility is not available between the health provider and the
insurance company and (iii) the bills are required to be paid prior to receipt of
insurance payment.

14. It is expected that most medical expenses will be covered by a UN medical insurance
scheme. However, if a staff member / PSA holder or a dependent recognised by UNDP,
incurs major medical expenses that are beyond the limits of the medical insurance
scheme and is faced with undue financial hardship, a salary advance may be considered
under the provisions for personal emergency salary advances.

Page 3 of 7 Effective Date: 30/12/1899 Version #: 4

 15. The advance may not exceed the lowest of (i) two months’ net pay, (ii) the maximum
reimbursable amount under the applicable medical insurance scheme or (iii) the
amount of the hospital bill. Advances for medical expenses can be granted concurrently
with an existing salary advance.

16. The advance for medical expenses must be settled through the applicable insurance
scheme or by the staff member / PSA holder within four months from when the
advance is granted.

Advances for pre-payment of rent

17. Internationally recruited staff members may be granted a rental advance where three
or more months' rent must normally be paid in advance to secure accommodation as
stipulated in the lease agreement. The request for advance must specify the amount of
the rent, the number of months for which the lease agreement indicates it is to be
prepaid, the amount and currency of the advance requested.

18. The number of months of advance must be in line with the normal practice for rental
properties in the duty station as confirmed by the Head of Office.

19. The amount of the advance covers only rent; it does not cover security deposits
(generally returned to tenant at the end of the lease), agents’ fees or recurring costs
such as electricity, water or other utilities where these are paid separately from rent.

20. The amount of the advance will be recovered within the term of the lease for which the
advance was requested or within the staff member’s current contract period,
whichever comes first.

21. Advances for pre-payment of rent are not authorised for staff members assigned to
Group I duty stations under the post adjustment system.

Advances for purchase of a private vehicle

22. Internationally recruited staff members from grades P-1 to P-4 may be granted a salary
advance for the purchase of a private automobile of up to US$7,500.00 or the local
currency equivalent at the prevailing United Nations Operational Rate of Exchange
(UNORE).

23. The requests for advance for this purpose will be considered, one-time only, within six
months of initial appointment or reassignment. The Head of Office must certify that the
vehicle is necessary in connection with the staff member's assignment.

Page 4 of 7 Effective Date: 30/12/1899 Version #: 4

 24. The request for advance must specify the amount, currency and where the advance
should be paid. Advances for the purchase of a private automobile are granted on the
understanding that the staff member intends to keep the vehicle for at least two years
or for the duration of the assignment, whichever is shorter.

25. Advances for the purchase of a private vehicle are not authorised for staff members
assigned to Group 1 duty stations under the post adjustment system.

26. Staff members on Temporary Appointments are not eligible for this type of advance.

Emergency Advances

Bulk Emergency Advances to groups of staff members

27. Salary advances may be exceptionally approved to groups of staff members / PSA
holders, in specific emergency situations by the Assistant Administrator and Director,
BMS in accordance with the conditions and procedures specified at the time of
approval.

28. Bulk salary advances as may be proposed by the Head of Office or United Nations
Country Team (UNCT) to respond to an emergency situation in a duty station, must be
approved by the Assistant Administrator and Director, BMS.

Personal Emergency Advance

29. Staff members / PSA holders may be granted an advance for personal emergencies of
up to two months’ net pay to meet genuine urgent, non-recurring, needs. These
requests will be considered on the merit of each individual case, including evidence
provided, and granted based on the best judgment of the Head or Director of the
Office, in the case of locally recruited staff and NPSAs or the Assistant Administrator
and Director, BMS, in the case of internationally recruited staff and IPSAs.

30. Situations that may be considered for advances for personal emergencies include:

(a) major expenses to repair a private residence damaged by natural or man-made

disasters (e.g., fire, flooding, etc.). Advances of this type may often be approved
on a duty station-wide basis as part of a Bulk Emergency Advance;

(b) major expenses related to undertaking security-related measures (fences, alarm

system, etc.) on a staff member’s / PSA holder’s primary residence based on
written recommendation of the UNDP security officer or UNDSS and submission
of a vendor invoice or estimate;

Page 5 of 7 Effective Date: 30/12/1899 Version #: 4

 (c) crimes causing serious financial loss, evidenced by an official police report or an
insurance claim, to the staff member and/or dependent as recognized by UNDP;

(d) funeral expenses in the event of death of an immediate family member;

(e) expenses related to essential medical or dental procedures and treatments for
staff members / PSA holders and/or their dependents as recognized by UNDP
that are not covered by their insurance scheme and upon submission of a
provider’s invoice or estimate.

31. Only one personal salary advance for emergencies may be granted during any twelve-
month period.

Unauthorized Requests

32. Salary advances shall not be authorised for purposes outside those covered by this
policy. These include but are not limited to the following:

(a) weddings, parties, or other such gatherings;

(b) school or college fees;

(c) holiday or other personal travel;

(d) purchase of a house or land;

(e) construction of houses, buildings or extension of existing premises;

(f) renovation or repair of houses or buildings through normal wear and tear;

(g) purchase of household furnishings and personal effects;

(h) payment of personal debts, bank loans or mortgages.

Page 6 of 7 Effective Date: 30/12/1899 Version #: 4

 Annex: Summary of Payment, Recovery and Other Conditions

Type of Request Advance Maximum Recovery Other Terms &

Eligibility Maximum Amount
Advance Initiated by Approved by Duration Conditions
Upon Initial
Appointment Ma Manager,
Full recovery in next
Global Payroll Monthly Net Pay
Non-receipt of regular payroll
HR Focal Services (GPS)
salary
Point and Manager,
Benefits &
Separation from All personnel Full recovery from Final
Entitlement 80% of Final Pay
Service Services (BES) Pay

Lowest of: (i) 2 months Must be covered by

Over 4 months or by
Head of Office Net Pay (ii) insurance a UN or UNDP
Medical Expense end of contract
or Designate reimbursable (iii) hospital medical insurance
whichever comes first
bill plan.

Manager, IP Staff outside of Term of Lease or end of In line with local

Staff Member
Rent Global Payroll Group 1 Duty Per signed Lease contract whichever rental market
Services (GPS) Stations comes first practice
and Manager,
Benefits &
IP Staff (P1-P4) Once only within 6
Entitlement 12 months or end of
except TAs, outside months of initial
Vehicle Services (BES) $7,500 contract whichever
of Group 1 Duty appointment or
comes first
Stations reassignment
Assistant
All personnel at
Emergency - HR Focal Administrator
specific Duty As determined at time of approval
Bulk Point and Director,
station
BMS
(1) For defined
specific conditions
related to staff/PSA
Head or
holder or dependant
Director of the
as recognised by
Staff Office or 12 months or end of
Emergency - UNDP
Member/PSA Assistant All personnel Two (2) month's net pay contract whichever
Personal (2) Official proof of
holder Administrator comes first
emergency is
and Director,
required
BMS
(3) Only one advance
over a 12 month
period

Page 7 of 7 Effective Date: 30/12/1899 Version #: 4