Why do some companies pay early for Christmas?

[wondering7777]

The company I work for usually pays us on the 30th of the month, but in December we're getting paid a week early, so we get it before Christmas (on the 20th I think). I was wondering why companies do this - is it to:

A) Ensure that people get their salary before all the Christmas bank holidays so nobody misses a rent/mortgage payment

B) Give people a Christmas "treat" (i.e. more spending money at Christmas)

C) Make sure people get paid before the accounts team go on their Christmas break (although surely it's all automated nowadays anyway!)

Does anyone know?

We pay our nanny on the 20th instead of the 31st so that she has the money before Christmas, if she needs it.

DH and I are paid on the 20th instead of the 31st too, and it is for the same reason (large employer who would have payroll staff in the office at the end of December anyway).

It's weird, isn't it, how not everyone's the same as you, @BrightYellowDaffodil.

It’s so annoying to get it early. I take out bill money so we are fine in that respect but it leaves my ‘fun’ money to last a week longer

How? Unless you've run through all of your previous salary, you should have some of the previous month's left.

As long as you're not receiving it late, the issue lies entirely with the fact that you're spending more because it's a busy social period.

Which is fine. Happens to all of us. But it has nothing to do with receiving money earlier!

@BerwickLad - it's relevant when people whine about a situation entirely of their own making that has very sensible operational reasons!

(again, this is for people paid a regular monthly salary)

If you are paid a consistent salary monthly, I'm afraid I judge HARD if you are unable to manage that payment arriving 10 days early.

This!!! X100 you are not getting paid any less, just earlier!! Take some out and pop it in a savings account for a week or two!! It’s not like it comes as a surprise!! 🙄

I guess if you always have spare money you don't get it.

My company doesn't do this and I find it very odd! Was really put out last year as I just assumed I'd be getting paid on 20th and so budgeted accordingly. Turned out I was wrong!

"It really screws over people on Universal Credit, but I blame the government for that cesspool."

Actually, that shouldn't happen. The UC guidelines for employers say that they can and should give the usual pay date (not the earlier one) when submitting payroll info to HMRC. This would ensure that UC payments aren't messed up.

I guess if you always have spare money you don't get it.

Nice try, but I have been counting every last penny of salary at times of my life, and I was even MORE in control then of where every penny went.

As long as money went in before I needed it out, I was good.

It's nowadays when I do have a large disposable income that I don't pay ac close attention to dates etc for direct debits.

I guess if you always have spare money you don't get it.

As someone who’s had plenty of time when she didn’t have any spare money, I budget extremely carefully so my money lasts as long as it needs to. Or do something simple like put it in a separate account.

At my last workplace we got paid early in December and then in Jan were paid halfway between the normal pay day and the date in December. (so usually 30tj of every month. 20th in December and 25th in Jan iyswim?) I always thought that as a nice touch!

its C - these things aren't all completely automated and the payroll people deserve to relax over Christmas knowing that the month's payroll is done and dusted.

Local government don’t pay any earlier.

My company doesn't do this and I find it very odd! Was really put out last year as I just assumed I'd be getting paid on 20th and so budgeted accordingly. Turned out I was wrong!

That doesn't make sense - your company doesn't do it but you assumed it did? Why would you assume something you know decent happen

I'd say reasons will be one or all of the ones you've suggested. It seems very wrong if it messes up UC payments

Depends how big the company is!

It’s option c in my case because every payroll is different (so automation doesn’t help much), the banks are shut for 2 days, and there is very little room for manoeuvre if there is a hitch.

Clearing time used to be a problem, now the focus is the legal obligation to get payroll processed by your due date, and the occasional catastrophe with electronic banking (eg, www.standard.co.uk/news/uk/tsb-delays-bank-apologises-after-payments-fail-to-go-into-customers-accounts-a4293531.html )

If everyone has their money, everyone can pay their bills, the HMRC stays off your case, and everyone can take a break.

You could ask your supervisor or someone in the payroll department.

We get paid early at Christmas too, it's the 23rd this year as it's the last working day as we close for the Christmas break and re-open on the 2nd Jan. I think it's because it's easier for Payroll to pay us early. On one hand it's good because we get paid before Christmas so we can get any last minute bits and pieces but on the other hand we then don't get paid again till 31st January so it's a very long wait in between if you overdo it at Christmas.

Ah @PleasantVille it does help when I actually say why in the post doesn't it.
I had just started with the company a month or two before!

I budget for Xmas all year, every month and budget for all bills each month whilst putting pocket money/spending money into a separate account - so getting paid earlier wouldn’t benefit me in any way. As other up thread have suggested - if your on a tight budget you’ll already have allocated money due to finances being tight

I've never been paid 10 days early! Usually just if pay day falls on one of the bank holidays/weekend days, I get paid the previous working day, so often that does work out a few days earlier in December. But I wouldn't want to be paid earlier than that - January's hard enough to get through as it is.

If you are paid a consistent salary monthly, I'm afraid I judge HARD if you are unable to manage that payment arriving 10 days early.

absolutely

I never understand people who are so broke in January - all my Christmas spending comes out of my November pay, if not earlier, so December salary just needs to cover January. Who wants to start the new year in the red.

We are paid on the 20th every month, so no need for early pay etc...

We have a small business. I'll be paying our employees a day earlier than usual - 30th instead of 31st just in case there's any banking issues/delays. Given that banks operate on those days and payments are automated I don't see the point paying earlier. I always hated getting paid before Christmas when I worked for a company, as January dragged on forever waiting on payday (having spent December salary in a time long, long ago where I could be out every night 😳)

I’m paid every fortnight so it’s no big deal to be honest.

I’m getting paid early and I’m not salary so I’m constantly checking how far away I am from the minimum I need to cover January. It will make for a tight January but then that pay check should be nice when it arrives.