Nathalie Thomas’s article (Report, May 9) highlights how UK households, to cover energy bills, are increasingly relying on credit cards, payday loans and “buy now pay later” financing schemes to make ends meet while they wait to get paid at the end of the month.
Monthly payroll became popular for many reasons — greater predictability of cash flow, reduced administration, reduced costs and later, the efficiencies of digital pay. But all these benefits favour the employer, not the employee. And payroll is now so ingrained into our lives that we don’t question it.
But people should be able to freely access their money and be paid when they want it.
This will improve financial wellbeing with access to pay on a daily, weekly or monthly basis at the discretion of the employee. It also enables people to have more control over cash flow thus reducing the need for payday loans and debt. People can also access real-time wage updates, enabling them to budget.
For employers, more frequent pay to employees has the potential to attract and retain talent, enhance employee wellbeing, improve productivity and reduce absenteeism.
Wages are an asset that belongs to the employee and, against the backdrop of the cost of living crisis, isn’t it time we drop the concept of the monthly pay cheque?
David Brown
Founder and Chief Executive, Hi
London SW1, UK