While I fully believe that employees should have flexible access to their own salary, I do question whether it’s morally right to charge them for the privilege.
It is clear the cost-of-living crisis is prompting greater questioning of the standard model, leading to many employers to consider dropping the concept of a monthly paycheque.
They are adopting a more flexible payment policy that allows employees access to their wages, giving them greater control over their cashflow and can reduce their dependency on buy now pay later schemes and credit cards. It also provides employers with an
attractive benefit to talent in the marketplace.
But if these salary access products are truly designed to improve financial wellbeing and help people through the cost-of-living crisis, as many of their providers state, should employees be the ones footing the bill?
While £1.50 might seem like a small price, it equates to a large APR when you take into account the amount they are accessing and the duration of the financing.