One in five British workers have asked their boss for a salary advance to cover bills and everyday expenses, according to new figures*. The survey of 1,950 workers across Europe found that UK employees are also the most likely to want flexible salary payments, with 47% interested in staggered payments across the month – ahead of Spain (45%) and France (39%). And, for 75%, their motivation is to gain control of their day-to-day finances (compared to 63% in Spain and 57% in France).
Among the UK workers who requested a salary advance, more than half (54%) used it to pay a bill and a third needed it for daily essentials like transport or food while others turned to advances to reduce their reliance on credit cards (28%) and to set aside money for savings (27%). Some used the money to cover non-essential expenses and childcare costs (both 22%), and one in five (21%) put it towards mortgage or rent payments.
Workers’ growing appetite for flexible pay reflects the real struggles they face today. Even though two-thirds (63%) received a pay rise in the last 12 months, many are still stretched between pay days – largely down to financial pressures. In fact, 42% have found it difficult to cope 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, that figure jumps to 65%.
To get by until payday, workers are using their credit card (52%), borrowing from friends or family (30%), using “buy now, pay later” schemes (28%) and going into their overdraft (27%).
“While workers are, in general, happy with their current payment methods, it doesn’t mean those methods work for everyone,” says Firmin Zocchetto, CEO at PayFit. “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.”
Other key findings:
- Two in three UK workers received a pay rise this year (63%), compared to 37% in France and 56% in Spain
- British employees are clear about their preferences on pay frequency:
- 21% would opt for bi-weekly payments (France 20%, Spain 26%)
- 16% want weekly payments (France 6%, Spain 12%)
- 10% want to choose payment frequency on demand (France 13%, Spain 7%)
- The desire for flexibility goes further: 61% of UK employees would like to choose the date they receive their salary
*Research from PayFit