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Beware the December pay trap!

edited 30 November -1 at 12:00AM in Debt-Free Wannabe
80 replies 20.2K views
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  • ash28ash28 Forumite
    1.8K posts
    Mortgage-free Glee! Debt-free and Proud!
    Really? Neither mine (LGPS) nor my husbands (company pension scheme) have been paid and we have been told normal dates which is 31st for me and 1st for him which will be paid on 31st as normal bank working day.


    My partner's company pension is paid at the normal time - 31st of the month but my December payment is always early.


    I usually get a letter with a breakdown of any increases that are to be applied and the date for December's payment.....
  • tizerbelletizerbelle Forumite
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    We get paid early every December - usually the Friday before Christmas instead of the 31st. It's done because certain employees clamour for it and so the MD thinks he's helping by paying early. I have countered that Christmas is not a surprise/unexpected event and it comes around every year at the same time so people have plenty of time to save/plan for it without stealing from themselves by being paid early.

    Those same people that clamour for it to be paid early are then the ones that will be heard in the New Year bemoaning the fact that January is such a long month. Nope, it's not. It's still just 31 days but because they wanted to be paid early in December they have to wait 41 days for their next wage. So the price for a little gain in December is more pain in January.
  • debtfreeme2015debtfreeme2015 Forumite
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    In my job we get paid on the 15th every month. Ive only been here four months and struggle as all my bills go out on the 1st. I always think im rich but have to remember not to spend any off it
  • Choccygirl123Choccygirl123 Forumite
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    Great advice Essex.

    I have fallen into once and never again! I think there is so much commercial pressure of people to have the 'perfect' Christmas. This year I've been off work a long time and ssp is tough going. It's been the best wake up call ever. Never before have we budgeted so hard, brave shifted and made Xmas presents on close family we'd normally doevdc£20/£25 each -£300. This year they've all got token gifts and some homemade sweets and fudge and we've spent £75 on everyone.

    It's the memories you make with children, the board game fallouts and the yummy baking you gorge on that counts.
  • Good reminder and advice. Strangely I don't think pensions get paid early (ours isn't anyway) so why salaries need to be done 10 days early is a mystery to me. Most companies shut off their payroll by about 7th or 8th anyway for salaries paid around end of the month so why in December they need to pay on 18th instead of 28th or 30th I don't know. Maybe some one who works in payroll could elaborate?
    All companies have different rules. We run a weekly payroll for our temps, and monthly for our salaried employees, monthly wages being paid on the last Friday of the month. We only process the bank wages 3 days before it hits the employees account as the worker might end up being off sick or taking unpaid leave. The short timeframe for processing avoids them being overpaid and having to claw this back in the following month.
    we are paying Decembers salaries on Friday 21st as most employees have asked for it then so they can finish their xmas shopping at the weekend.
    Those of us who budgeted for our xmas pressies over the last 11 months tend to do what the OP has suggested and keep the money separate until it would normally be due.
    Mortgage = [STRIKE]£113,495 (May 2009)[/STRIKE] £67462.74 Jun 2019
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  • Finchy2018Finchy2018 Forumite
    478 posts
    100 Posts Second Anniversary Name Dropper Debt-free and Proud!
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    I have never experienced this. Everywhere I have worked pays as normal on the last working day of the month.
  • This is a very timely reminder, thank you EssexHebridean! I've put a reminder in my phone to transfer to my savings account on Friday. I'm always aware that I shouldn't be spending it, but never considered the simple act of moving it out of my current account. So simple, and so effective. Thanks again :)
    Debt at Nov 2017: £8,619 Debt at Dec 2018: £4,161 Debt at Nov 2019: £0
    A perpetual work in progress.
  • One of the benefits of working for the NHS, is that in January they pay us slightly earlier again to bridge the gap. I'm all set for Christmas, so my pay goes on nothing but my usual outgoings. I'm off for a short break to London next month, so that's my motivation to be a good girl. :naughty:

    My sister and I have this tradition of going to our local Sainsbury's for a coffee on Christmas Eve, the cafe overlooks the tills, and we watch gobsmacked at the amount of food and drink going into their trolleys. I imagine they are the same people causing the queues at the ATM in January, because they're staring at their balances. I swear one day, I'll yell "it ain't going to change, you spent it all before payday!' :D
  • fatrabfatrab Forumite
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    I got paid today, we're normally paid on 25th so it does feel very early.

    But I've budgeted accordingly, and my wages won't be touched as Xmas is already accounted for.

    All the best everyone :rudolf:
    You can have results or excuses, but not both.
    Challenge - be 14 Stone BY XMAS!

  • I believe it's a tradition from the days when employers had to go to the bank and withdraw cash to do the wages. With the banks (and often the businesses) closed over the Christmas period it had to be done before everything shut down.


    Even now with (nearly) everything electronic, for many small businesses it's convenient to pay early if they are shutting down or short staffed over Christmas. I used to do it when I employed staff in my business.
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