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?

if being paid early makes a difference to your finances, you need to take a hard look at how you budget.

that usually means that tatmas needs to be cut back. There is no reason why family finances should be worse at this time of year if people just learnt to say 'no'. Food and bills don't cost more at Christmas.

I was told its so Payroll don't need to be in over Christmas. Only worked two places where this was case.

I've only worked at one place where this didn't happen.

An accountancy practice.

The boss went on holiday until the 15th of January without letting us know - apparently, it was obvious that we wouldn't get paid on New Year's Eve as he was leaving the country on the 20th December and why on earth did we think we'd get paid early, of all things?

I left before he could fuck me over during his 4 week summer vacation, but not before he did the same over Easter on the grounds that 'wages aren't due until the last day of the month and the bank is closed on bank holidays, so I can't phone them on the day'.

Our normal pay date is 28th or earlier if it falls on a weekend
This year I will pay on 20th as that is what the majority of my staff want
Mainly to go and do their last minute present buying and food shop the last weekend before Xmas
I would prefer less of a long haul to end of Jan pay date but I am in the minority

We get paid on the 23rd instead of 27th I'm working the 24th so it's only 4 days early and I plan so I Hopefully don't need it before Christmas and I can use as normal in Jan. jan feels like a long month as it is!!

My company pays on Christmas eve but I do not touch my salary until 28th December throughout the year I also save £10 a month in a separate pot to savings as an extra £110 gives a nice extra to the dark January days when we can blow a bit extra on meals out etc without it coming out of December payday.

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

It's this, usually. It's not as automated as you'd think - the payments might be made manually but there's usually adjustments and mistakes and the likes, which means people do have to be around, and the banks need to be contactable.

This is only the second year I've worked for a company who does this. Last year it didn't make a huge difference as it was a second job and I only worked one day a week.

This year its my main source of income and I'm quite glad to have it a few days early - I'll put aside what normally comes off for bills on the 28th and the rest means I can have a bit more flexibilty with my spending before Christmas. I'm happy to cut back in January which is a less full-on month financially.

C for me, in every job I have been in.

I don't mind! It's a bit annoying that the way the 27/28 falls that's it's a long time until the next pay check, but you still get the same money.

I too don't understand what the issue is. You get paid the same amount? So just leave it in there till the following week if it's that much of a hassle!

Ah, my eyes are opened on reading other replies and realising it must be a massive issue for those on universal credit.

I am going to subtly ask the question in the right time at work now about whether it disadvantages employees, and as such if it should change.

I hadn't thought it that before but I don't really understand the universal credit system of 4 weekly payments versus monthly payments.

Ours does it because there are fuck ups every month and it means they can be sorted out before payroll take 10 days holiday, risking leaving people with no money over Christmas and into the new year.

Last working day of the month for me so no pay until the 31st !

The knock on consequences for people in receipt of universal credit are unfortunate and unfair though and UC should work annually not monthly to overcome this.

It actually didn’t make much of a difference for me last year I still got paid on dec 27th.

Hmrc instructions are to date the payment on its normal date this avoiding affecting universal credit. I like to break up for Christmas knowing the salary has gone out of the bank properly

My current employer gives as Christmas money in our November pay instead (no idea how it's calculated but I had an extra 500€ in my November pay). It's just a present They do it in July too... Pay is always on 25th or nearest working day and doesn't change.

I don't understand how it leaves people short in January. Move it to savings and pay yourself on the correct day?

I have worked in a number of organisations and the early December pay has always been to give staff their money before Christmas to help them with the extra expense.

It also leaves time to correct any errors so people aren't left destitute.

Must be c) in my case - office shuts over Christmas/New Year

Most places I've worked did this, but my current employer pays on15th every month, so December is the same as any other month. Much prefer that.

So glad my works paydays is always the 15th or before if it falls on the weekend and dh’s is the 18th.

Ours is last working day so it is usually the last Friday of every month but December and July we get paid early.

Having worked with payroll teams in loads of big companies, you may be surprised by the amount of time between when payroll 'closes' so the business can't make any changes and when you are paid.

It usually seems to be a week to 10 days with sign off at loads of stages along the way. Dates are pulled forward because of bank holidays etc. As others have said, even the most automated system still has loads of intervention.

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

It shouldn’t do. We report their usual pay date to HMRC when submitting the payroll information - HMRC have told us to do it that way