I was keen to know the rationale for pay day being the last Wednesday of each month. This frequently causes havoc with people when we hit a ‘5 week pay month’, making budgeting often strained.
It would help a lot of us if payday were assigned a fixed date i.e. 29th of each month. Weekends would obviously affect this but would only give a 2-day variation.
We believe the history of our payday being the last Wednesday of the month dates back to when we were on the local authority payroll. We have continued with their practice when we introduced our own payroll system.
The rationale underpinning the fixed day approach was that a fixed day of Wednesday provides staff with an assurance that their salary will be in their bank accounts on that day. If we were to select a fixed date eg 29th of the month and this fell on a Saturday, Sunday or Bank Holiday, salaries would be delayed in hitting bank accounts as this is not a BACS processing date. For example in January the 29th is a Saturday and therefore the salary would not be in people’s account until Monday 31st. This may cause people more problems in budgeting with standing order etc especially where the money wouldn’t appear until the 1st of the following month which would happen in July this year.