Nearly half (46%) of UK employees want to scrap the traditional monthly payday and instead access their earnings whenever they need them, according to new research.
Earned Wage Access, also known as On-Demand Pay, allows employees to withdraw a portion of their already-earned wages before their scheduled payday, rather than waiting for the traditional monthly pay cycle. Of the 1,000 workers polled, 46% said they would prefer wages on demand, with a further 29% neutral on the idea. Over half (52%) said being able to access their pay when it suited them would help them manage the rising cost of living, while a similar number (51%) felt it would give them greater control of their finances.
When asked how they would use On-Demand Pay, respondents said it would help them cover unexpected bills (43%), manage day-to-day expenses (40%), and reduce reliance on debt such as credit cards or overdrafts (29%).
Two thirds (66%) of people said they would access their pay more than once a month if they could, with 22% saying they’d access it weekly, 12% fortnightly, and 6% daily. More than a quarter (27%) said they’d only occasionally use it more than once a month, with 33% preferring to stick to monthly access.
The findings suggest the long-standing tradition of the monthly payday – a workplace convention dating back over 100 years – is ripe for disruption, as employees seek greater financial control to combat the cost of living and to improve financial wellbeing. Nearly half (48%) agreed that an employer that provided Earned Wage Access would be more attractive than one that didn’t, compared to just 7% who disagreed.
Stephanie Coward, Managing Director for HCM at IRIS Software Group, said: “For over a century, many Brits have lived by the rhythm of the monthly payday. It’s so ingrained that few of us ever question it. But technology is revolutionising every aspect of how we manage money – from instant payments to real-time banking. The workplace is the final frontier. This isn’t just about paying people differently; it’s about using technology to give workers the financial flexibility that matches the reality of modern life. We’re finally catching payroll up to the 21st century.”
While the majority of workers see clear benefits, a minority (21%) expressed concerns that On-Demand Pay could make them feel less in control of their finances. Their top worries included overspending, disrupting monthly budgeting routines, and being out of sync with monthly bill cycles.
Nearly a quarter said they would be against their employer offering On-Demand Pay. For these reasons, IRIS and Level’s joint solution includes a range of safeguards, proactive usage monitoring and full compliance of the Chartered Institute of Payroll Professionals’ Code of Practice (of which Level is a co-founder).
The study also explored the role of employers in financial wellbeing. When asked if it was fair to hold employers responsible if an employee ran into money problems after accessing wages early, most said no – believing it is down to individuals to manage their own money. However, nearly a quarter (23%) felt the employer bore responsibility, with 13% saying responsibility should be shared.
Stephanie Coward added: “When your solutions are responsible for processing payroll for 1 in 6 UK workers, you have both the insight and the obligation to innovate. This capability is ready, it’s proven, and it’s what employees are demanding. We’re making it accessible to UK businesses of every size – because whether you’re an SME competing for talent or an enterprise managing thousands of employees, the ability to offer flexible pay access is becoming essential.”
Research from – IRIS Software Group
www.iris.co.uk
