FastPAYE reveals extent of problems caused by monthly wage payments

Research by fastPAYE has revealed that monthly wage payments leads to a plethora of money-related worries for almost half of UK workers. 

It comes as the firm seeks to enable deeper payment flexibility with the launch of its wage application that caters to the modern workforce.

Commenting on the findings, Ian Hogg, chairman of fastPAYE, stated: “The number of people going through financial anxiety because of the outdated monthly wage system often relied on by the gaming sector is concerning, especially considering that with new technology this stress can be lessened. 

“Whether you’re a casino and betting company or a large retailer, if a staff member has money-related worries it is likely to affect their performance in the workplace. But by giving employees early access to a proportion of their earned wages, businesses can give workers greater control over their finances and in turn help to harness a happier workforce.”

Of those surveyed by the company, which launched its wage management system last month, 46% said that their financial concerns increased in the week before receiving their monthly wage packet.

This stress can lead to reliance on high interest credit options to tide workers over, with most people turning to credit cards to see them through the prolonged pay period. More than half of respondents admitted to using one often and at least 20% of those turn to plastic every month.

Overdrafts also provide a fallback with 40% going into the red as payday approaches, while a fifth of employees which took part in the research resort to costly payday loans that can have significant financial consequences.

Credit acquired is most spent on groceries according to the survey, shortly followed by bills, leisure activities and house repairs as workers living payday to payday struggle to cover unexpected costs when they arise.

Backed by sister company ShopWorks, a staff management system provider to some of the biggest gaming and betting brands including Betfred, PaddyPower, Gauselmann, Novomatic, Mecca and Grosvenor, fastPAYE’s research emphasises the impact of the four to five-week pay gap can have on employee financial wellbeing.

Expert Analysis: Modernising and evolving the payment structure for wages within companies can be a key factor when it comes to improving workforce morale, and when implemented on a wider scale, could have a widely positive impact on the overall economy.