Help centre › MAJA Payroll › HR

Give an employee a loan or salary advance

Quick answerIn MAJA Payroll go to HR → Visa Cost & Loans → Loans → Add loan, choose the employee, type, amount and monthly deduction, and click Save loan; pay the money out in MAJA Books → Payroll → Loans → Disburse, and the monthly deduction is then filled into each payroll run and recovered when the payroll posts to the books.
Where: MAJA Payroll → HR → Visa Cost & Loans → Loans; MAJA Books → Payroll → LoansWho: Payroll side: the owner, an admin, or a role allowed to see payroll. Books side: a role allowed to use MAJA Books → Payroll.

Steps — record the loan

  1. In MAJA Payroll, under HR, click Visa Cost & Loans.
  2. Click the Loans tab.
  3. Click Add loan.
  4. Choose the Employee and the Type: Salary Advance, Personal Loan, Emergency Loan or Housing Loan.
  5. Enter the Loan amount (AED) and the Monthly deduction (AED) — MAJA shows how many months it takes.
  6. Set the Start date, add Notes if needed, and click Save loan.

Steps — pay the money out

  1. Open MAJA Books, click Payroll in the left menu, then Loans.
  2. Choose the Date and the Bank.
  3. Click Disburse on the loan's row and confirm.

What MAJA does for you

  • Disbursing posts Dr 1310 Employee Advances & Loans / Cr bank.
  • Each payroll run fills the Loan deduction box with the monthly amount, never more than what is still owed.
  • When the payroll is posted to MAJA Books, the loan balance falls and the loan becomes Settled at zero.
  • At final settlement, any balance left is deducted from the settlement.

Good to know

  • For a month the employee pays cash instead, set the loan deduction to 0 on the run; to take more, raise it.
  • Deductions (loan plus other deductions) are capped at 50% of the wage; anything above stays in the loan balance.
  • Cash repayments are recorded only in MAJA Books → Payroll → Loans → Cash return (Dr bank / Cr 1310). Write off forgives the rest and needs a reason.
  • Deleting a loan that already has a journal or a repayment needs the accountant's approval.

Related guides

Run payroll for one employeePost payroll to MAJA BooksProcess a final settlement (end of service)
People also ask
  • How do I give a salary advance in MAJA Payroll?
  • How are employee loans deducted from salary in MAJA?
  • How do I record an employee paying back a loan in cash in MAJA?
  • How do I stop the loan deduction for one month in MAJA Payroll?
Still stuck? In the app, tap the ? button at the top and choose Chat with MAJA support — the screen you are on goes with your message and the reply comes to the same place (within one working day). Or write to support@majabooks.com, or ask MAJA's assistant (the round button at the bottom right of MAJA Books).