When payday arrives you could receive money in a number of different ways, in this article we’ll look at how your same day payday loan cash could make its way to you and how people in the UK are getting paid.
In the UK you could be paid by the hour, a daily rate, a weekly rate, or have a fixed rate for each calendar month. Equally, payday could fall weekly, monthly, or you could find that Payday occurs sporadically. Whether your payday comes weekly, monthly, or the last working day of each month will be determined by your employer. The most common way to be paid is monthly, specifically on the last working day but agency workers and some other staff are paid weekly. Most direct debits mount up at the beginning of the month and hence the demand to get paid before the month end.
The Ways UK Employees are Getting Paid
Once upon a time, people would receive envelopes containing real cash known as a ‘pay packet’ or receive a ‘pay cheque’ on their payday. These days, automated services are used instead. One common system is BACS the Bank Automated Clearing System. BACS payments are sent to your account by your employer and may take up to 3 working days to clear. As a result, typically, they’re processed 3 days before payday. A similar system, which clears cash the same day it transfers, is CHAPS (Clearing House Automated Payment System). This deposits funds into your account on payday and you can spend them the same day. Today, most banks support faster payments and even BACS could be same day, sometimes without incurring extra transfer fees. These payments go directly to your bank and are very common.
Some companies do still pay by cheque and payday could still come in the form of a cheque if you work from home, but this is gradually being replaced with bank transfers.
The final and most risky type of salary you could receive is ‘cash in hand’. This type of pay is controversial because it often means that the people receiving the cash are responsible for paying their own national insurance and income tax contributions. If they don’t they could get in trouble for tax fraud. If you’re paid in cash on payday, it’s also worth considering what rights you have if your employer gets the amount wrong.