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The US isn't what I would call a "worker friendly" place so IMO the payout period is completely under the decision of companies yet most choose to pay ever week
by sschueller 3y ago
The US isn't what I would call a "worker friendly" place so IMO the payout period is completely under the decision of companies yet most choose to pay ever week or ever other week while in Switzerland for example almost every company pays out monthly.
I was curious if there was some benefit for a company to pay more frequently when it appears to be more of an overhead.
- soultrees 3y agoYou’re right, and I’m surprised the companies don’t have longer pay periods in the US actually. I also wonder if there’s an economic benefit to shorter pay periods? Because the faster that money is in the worker’s hands, then the faster it’s distributed again into the economy. Monthly seems too long for me from a worker’s point of view though, you’re effectively giving the company a short-term, interest-free loan at that point. And when you factor in the fact that your purchasing power is reduced by the time you get paid, and any opportunity costs, the real cost to the worker can be quite high.