How Is My Salary Affected If I'm Paid in Arrears?
What does 'paid in arrears' mean traditionally?
When your employer pays a salary after all shifts in a pay period have been performed, typically several days after that pay period has ended, this is known as an 'Arrears' payroll.
Traditional example: John Smith works shifts during the 1st – 31st July pay period and is paid net wages for those shifts on 7th August.
What does 'paid in arrears' mean when using Wagestream?
When using Wagestream, since you are able to access your wages as you earn them, there will always be a date range in which you will have access to wages from two pay periods: the previous pay period and the current pay period. We refer to this as the Arrears Zone.
This means that if you stream any of your earned wages during the 'Arrears Zone', you may still be accessing wages from your previous pay period, not the current pay period. 🤯
Example: On the 5th of August, John Smith has access to £1250 and streams £1000. Because, at the time of streaming, John has not yet been paid his July wages and has also accrued £250 in August so far, the amount he has accessed is broken down as follows:
- £750 of what John accessed was pulled from his July pay period, which he is due to be paid all remaining net wages 2 days later on 7th August.
- £250 of what John accessed was pulled from his current August pay period, for which he will receive his remaining net wages on 7th September.
Are you still with us?
Here at Wagestream, we think it's important you have the ability to access your earned wages at any time, right up until payday. We'll even do the maths so you don't have to! 😉