[EMEA] UK workers likeliest to request salary advance

New research has revealed that one in five UK workers has asked their boss for a salary advance to cover bills and everyday expenses, making them the likeliest in Europe to do so, HR News reports.

PayFit surveyed 1,950 workers across Europe and found UK employees were also the most likely to want flexible salary payments, with 47 per cent interested in staggered payments across the month.

The next most likely to make the request were Spain (at 45 per cent) and France (39 per cent). 

For 75 per cent of these UK workers, the motivation was to gain control of their day-to-day finances (compared to 63 per cent in Spain and 57 per cent in France).

Among UK workers requesting a salary advance, more than half (54 per cent) used it to pay a bill and a third needed it for daily essentials like transport or food. Others used such advances to reduce their reliance on credit cards (28 per cent) and to set aside money for savings (27 per cent). 

Some respondents used the money to cover non-essential expenses and childcare costs (both 22 per cent), and one in five (21 per cent) put it towards mortgage or rent payments.

Despite two-thirds (63 per cent) receiving a pay rise in the last 12 months, many are still stretched between pay days, and this is largely a result of financial pressures. 

Forty-two per cent cited difficulty coping with the cost of living because they have had to wait until the end of the month to be paid. Among those who requested an advance, the figure rises to 65 per cent.

To tide them over until payday, employees use their credit card (52 per cent), borrow from friends or family (30 per cent), use “buy now, pay later” schemes (28 per cent) and go into their overdraft (27 per cent).

“While workers are, in general, happy with their current payment methods, it doesn’t mean those methods work for everyone,” Firmin Zocchetto - CEO of PayFit - said. “Rising costs and stretched budgets mean many people have no choice but to live day by day, which tells us something needs to change. It’s not to say that employers must offer advances. Rather, it’s about giving employees more choice, more control and more support. Employers have a real opportunity to personalise pay and help build financial literacy, so staff can manage their money with confidence, not just to get through the month but to plan for the future.”

Source: HR News

(Quote via original reporting)

New research has revealed that one in five UK workers has asked their boss for a salary advance to cover bills and everyday expenses, making them the likeliest in Europe to do so, HR News reports.

PayFit surveyed 1,950 workers across Europe and found UK employees were also the most likely to want flexible salary payments, with 47 per cent interested in staggered payments across the month.

The next most likely to make the request were Spain (at 45 per cent) and France (39 per cent). 

For 75 per cent of these UK workers, the motivation was to gain control of their day-to-day finances (compared to 63 per cent in Spain and 57 per cent in France).

Among UK workers requesting a salary advance, more than half (54 per cent) used it to pay a bill and a third needed it for daily essentials like transport or food. Others used such advances to reduce their reliance on credit cards (28 per cent) and to set aside money for savings (27 per cent). 

Some respondents used the money to cover non-essential expenses and childcare costs (both 22 per cent), and one in five (21 per cent) put it towards mortgage or rent payments.

Despite two-thirds (63 per cent) receiving a pay rise in the last 12 months, many are still stretched between pay days, and this is largely a result of financial pressures. 

Forty-two per cent cited difficulty coping with the cost of living because they have had to wait until the end of the month to be paid. Among those who requested an advance, the figure rises to 65 per cent.

To tide them over until payday, employees use their credit card (52 per cent), borrow from friends or family (30 per cent), use “buy now, pay later” schemes (28 per cent) and go into their overdraft (27 per cent).

“While workers are, in general, happy with their current payment methods, it doesn’t mean those methods work for everyone,” Firmin Zocchetto - CEO of PayFit - said. “Rising costs and stretched budgets mean many people have no choice but to live day by day, which tells us something needs to change. It’s not to say that employers must offer advances. Rather, it’s about giving employees more choice, more control and more support. Employers have a real opportunity to personalise pay and help build financial literacy, so staff can manage their money with confidence, not just to get through the month but to plan for the future.”

Source: HR News

(Quote via original reporting)