By Daniel Hunter
A fifth (21%) of employees have admitted that January will be a financially difficult month due to the early payment of salaries in December, according to recent research from the Solihull-based Chartered Institute of Payroll Professionals (CIPP).
The CIPP ran a survey last month asking respondents whether they were receiving their salaries earlier in December and what affect this would have on their monetary situation during Christmas and in the New Year. Of the 158 people who participated in the research, more than three-quarters (78%) said they were getting paid earlier in December in time for Christmas.
Another interesting finding revealed that one in ten (10%) said they would not have been able to afford Christmas (such as presents and parties) if they did not get paid earlier in December.
“With talk of Britain possibly facing a triple-dip recession, there are some businesses out there that have been fiscally conservative by not rewarding their staff with Christmas bonuses in 2012," Mr Lindsay Melvin, Chief Executive of the CIPP, said.
"Indeed being paid earlier in December would have brought some financial relief to those who are struggling in this volatile economic climate.
“It also comes as no surprise that one in 10 would have not been able to afford to celebrate the Christmas season if it were not for organisations giving staff their salaries earlier in the pay cycle.
“That being said, employees have to be careful not to fall victim to the December pay stretch. The CIPP encourages workers to be conscious of their expenditure this month and budget their money for six weeks instead of four, especially since the next pay day could be as late as the end of January for some people.”
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