Nathalie Thomas’ article (Report, May 9) highlights how British households are increasingly relying on credit cards, payday loans and “buy now, buy now, pay later” to make ends meet while waiting to be paid at the end of the month.
Monthly payroll has become popular for many reasons – greater cash flow predictability, less administration, lower costs, and later, the efficiency of digital payroll. But all of these benefits benefit the employer, not the employee. And payroll is now so ingrained in our lives that we no longer question it.
But people should be able to freely access their money and get paid whenever they want.
This will improve financial well-being with access to payment on a daily, weekly or monthly basis at the discretion of the employee. It also allows people to have more control over cash flow, reducing the need for payday loans and debt. People can also access real-time salary updates, allowing them to budget.
For employers, more frequent employee compensation has the potential to attract and retain talent, improve employee well-being, improve productivity and reduce absenteeism.
Salary is an asset that belongs to the employee and, in the context of the cost of living crisis, isn’t it time to abandon the concept of the monthly paycheck?
Founder and CEO, Bonjour
London SW1, UK