What are the popular trends in the frequency of pay and advance policies?

What are the popular trends in the frequency of pay and advance policies?

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As an HR professional, it's essential to stay updated on the current trends in pay frequency and advance policies. Some popular trends emerging in this area include the shift towards more frequent pay schedules, such as weekly or bi-weekly payments, to meet employee expectations for faster access to their earnings. Additionally, advances in technology have enabled many companies to offer on-demand pay options, allowing employees to access a portion of their wages before the traditional payday. This flexibility in pay schedules and advances reflects a growing emphasis on employee financial wellness and satisfaction. By understanding and implementing these trends, HR professionals can better meet the needs and preferences of their workforce.

Dear Pranav,

Monthly disbursement of salaries and wages is a statutory requirement. The will of the employers cannot prevail in choosing the frequency so that a trend is formed. Neither populism can override the statutory requirement.

Thanks,

Dinesh Divekar

The Payment of Wages Act prescribes various wage periods and dates of payment of wages. Accordingly, it shall not exceed 30 days, and the payment in respect of that period should be made within the next 7 days. In an establishment employing 1000 or more employees, the date of payment of wages shall be extended up to the 10th day of the following wage period. There are provisions for payment by week, fortnight, and even daily. But the most popular frequency of payment of salary is a monthly basis.

There is no legal requirement for any advance payment of wages. But companies use to pay salary advances by the middle of the month.

As rightly pointed out, there is no legal/statutory restriction on faster pay. In fact, in spirit, the wages act favors payment as soon as the work is conducted.

I am personally surprised that in a credit-constrained country which otherwise has seen rapid adoption of new technology, employers are still able to get away by paying so late.