When is Payday?

Payday is a significant date for employees, as it rewards them for their hard work and ensures that they can keep up with bills and other financial responsibilities. In the UK, the frequency and specific day of receiving wages can vary widely depending on the employer, and the nature of the employment contract. This guide aims to clarify common pay schedules such as monthly, weekly and fortnightly, and explains the factors that can influence the exact day when wages are received.

Common pay frequencies

When is payday this month? That all depends on the system used by your employer. What the majority of businesses have in common is that their paydays will fall on specific days according to a consistent schedule. Below are the three most common payday frequencies.

Monthly pay

A monthly payday is by far the most typical arrangement. Employees receive their wages once a month, usually on the last working day or the last Friday of the month. This schedule is used in many sectors, as it simplifies payroll processing and financial planning for both employers and employees.

Monthly pay provides the convenience of budgeting for regular expenses such as rent, bills, subscriptions and other monthly outgoings. However, it's important to be aware that the specific day can vary. For instance, if the last day of the month falls on a weekend or a bank holiday, payday might be brought forward to the nearest preceding working day.

Weekly pay

Weekly pay schedules are also common, especially in industries like retail, hospitality and construction. Employees receive their wages every week, usually on a specific day such as Friday. This frequency can be beneficial for managing short-term cash flow and expenses, making it easier for employees to handle daily or weekly financial obligations.

Fortnightly pay

Fortnightly pay, where employees are paid every two weeks, is less common but still used by some employers. This schedule finds a happy medium between weekly and monthly pay frequencies, providing a balance of regular cash flow and manageable payroll processing.

Variations in monthly paydays

Though the last working day of the month is a standard payday for monthly salaries, variations can occur for several reasons. By knowing all the facts, you’ll no longer have to ask yourself “when is payday?”

Employer's chosen pay date

Some employers choose specific dates for payday, such as the 25th of each month or the last Friday of the month. These dates might be selected to align with company accounting practices, or to ensure consistency for employees.

Impact of bank holidays

Bank holidays can influence the exact payday too. If the scheduled payday falls on a bank holiday, employers might process the pay earlier to ensure employees receive their wages on time. For instance, if payday falls on a bank holiday, wages might be paid out on the preceding working day.

Pay schedules in the public sector

Public sector employees often have different pay schedules compared to private sector workers. In some cases, public sector wages are paid on a fixed date each month, regardless of weekends or holidays. This consistency can be beneficial for financial planning, but might differ from the private sector's more flexible approach.

What time do wages go into the bank?

Most businesses will make BACS payments, which usually enter the employee’s bank account between 1am and 7am on payday.

What happens if payday falls on a Sunday in the UK?

If payday falls on Saturday or Sunday, your employer will most likely bring it forward to the nearest preceding working day.

Checking your specific payday

Given the above variations, it's crucial for employees to know their specific payday so that they can manage their finances effectively. The most accurate source of information about your payday is your employment contract. This document should clearly state your pay frequency and the specific payday.

If your contract is unclear or you have additional questions, contacting your employer’s payroll department is the best course of action. Payroll professionals can provide detailed information about your pay schedule, including any variations due to holidays or company-specific policies. If you work for a small business or a sole trader that doesn’t have a payroll department, you can speak to your line manager about your pay schedule.

The importance of understanding your pay schedule

Understanding how your pay schedule works is essential for several reasons:

• Financial planning: Knowing your payday helps you to plan your budget, ensuring you have enough funds to cover bills and other expenses.
• Avoiding overdrafts: Being aware of when you’ll get paid can help you to avoid overdraft fees or late payment penalties.
• Peace of mind: Clarity about your pay schedule can reduce stress and anxiety about your finances. It also means that you and your employer are on the same page, as you both know when wages will enter your account.

If you have a flexible working arrangement, such as part-time hours, job sharing, or working different hours to allow for school runs, you need to know when you will be paid. Chances are it will be on the same day as your colleagues, but it’s essential that you know your rights.

Asking for an advance

If now and then you find yourself requiring your wages a little earlier than usual, such as needing cash for home repairs or an MOT, there might be the option to ask your employer for an advance. This is when money you have already earned is paid before your usual payday. Rather than just going ahead and doing this, make sure to first check out our guide on how to ask your boss for an advance.

This article should have helped you to better understand how paydays work, so you’ll no longer need to ask yourself “when do I get paid this month?” Bear in mind that if you start a new job, your new payday schedule could be different from your old one. This may mean being paid a little earlier or later in the month, or at a different frequency than what you’re used to. If you’re considering applying for a new job or exploring your career options, take a look at our guide on how to write a CV.

For more insights, dive into our blog and find out if you could go a whole year without buying anything new, as well as advice on how to get out of debt. We’ve also got a helpful guide on 5 questions to ask yourself before taking out a loan.

Representative Example

Based on the last working day of each month

Interest rate 255.5% pa (fixed) Representative 939.5% APR

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Warning: Late repayments can cause you serious money problems. For help, go to www.moneyhelper.org.uk.

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