Getting paid once a month is like loaning money to your boss. What if you got paid every day?
The payday infrastructure for corporate employment in Africa works on the salary model. You get paid between the 25th to 31st day of the month, and in many cases, payments are late. It is not uncommon to be owed a couple of months’ salary. These late payments do not usually come with interests, but they should, don’t you agree? I mean banks make a fortune borrowing the money you deposit with them and then make loans available to others that will pay a higher interest rate.
But how do you keep going while you wait for “payday”? The bills are piling up, the car needs gas, or worse, tires are flat. Commuting isn’t free, kids need to eat, the wife is nagging; she needs to go shopping for groceries. You hope and pray that the mosquitoes stay out because no one wants these medical emergencies. Parents and in-laws aren’t smiling either, considering they depend on you in a typical African house. You’re stuck with “I will see what I can do by month’s end” since you don’t get to bill daily living expenses to your company’s credit card so it gets deducted at the end of the month because you’re good for it, right?
Now let’s consider your options
You could probably take out a loan or overdraft from your bank or other financial institution to cover these expenses while you wait for the salary to come to save the month. But hey, these interest rates are not very friendly. Doesn’t it seem like working at a deficit? I mean you just want to keep your head above water and keep going because you actually do something for a living and you should be able to take care of these.
Basically, because you work every day and you are not paid every day, you are giving your boss a four, or five-week interest-free loan on your labor. Very generous of you, comrade!
What can we do about this?
You should have options on what to do with the money you’re owed by the end of the month. You do work for your money, it doesn’t have to play hard to get now, should it? How about you get access to the money you earn every week, or even better – every day.
Fortunately for us, some forward-thinking teams are looking into making the paycheque system more efficient. And no, we are not talking about queuing outside the office on Friday evening to get the cash in an envelope. Your money can be available in your account by the close of business.
Like we say at Bento, you don’t have to wait until the end of the month to get paid anymore. You can get paid every day, and you definitely should.