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Daily Mirror
Daily Mirror
Business
Ruby Flanagan

Asda workers can now access their monthly wage early - but there is a catch

Asda has confirmed 140,000 employees will be able to access their pay early as families continue to battle against rising costs.

The supermarket chain has signed up to financial app Wagestream, which allows employees early access of up to 50% of their earned contracted pay.

Asda workers will not have to pay anything to get their pay for the first time.

However, employees will then have to pay a flat fee of £1.50 each time they access their salary early until the next pay cycle, regardless of how much they withdraw.

Asda staff will also be able to automatically set money aside into a "rainy day" pot and can enter into a prize draw which could double it.

There are also tools on the app which aim to help improve financial education.

These include things such as a benefits entitlement calculator and a financial wellbeing quiz to benchmark progress and assess areas to improve.

Hayley Tatum, Asda's chief people and corporate affairs officer said: “We understand that from time to time our colleagues may need a bit more financial help, something which would be made worse by the current cost of living crisis.

“We are always looking at ways we can help and giving our colleagues flexible access to their pay, alongside a range of support and guidance through the Wagestream App could prove vital in giving them financial peace of mind as well as their mental wellbeing.”

Wagestream is one of the biggest providers of this service with around 500 companies and businesses signed up.

These include NHS trusts, Burger King, Next, Halfords, Travis Perkins, The Co-operative Group, and Pizza Express.

Around two million workers across the globe have access to this app in 2023.

Other companies offering flexible pay include the financial services group Revolut.

Debt campaigners have issued warnings about flexible pay, as some workers may take their wage early without realising the consequence.

If people take from their pot, they will have less money coming in on their actual payday which could put people into financial difficulty.

If you do take out your wage early, you'll need to make your wages stretch out a bit more than usual.

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