Why do many companies pay wages around the 15th?

Someone once divided companies into three types based on the time when wages are paid:

One type is companies that pay wages from 1 to 10. This kind of company is the best. It is usually a high-tech company. It is strong, not short of money, and has no worries about employee turnover, so it pays wages to employees early.

The second is to pay wages from 11th to 20th. Generally for state-owned enterprises, public institutions, etc., the operation is balanced, calm and step-by-step. It cannot be said to be good or bad.

The third type is to pay wages at the end of the month. They are generally labor-intensive enterprises with poor operating capabilities and poor profits, and their property conditions need to be improved.

Judging from the above, the unit that pays wages on the 15th is an ordinary unit, neither good nor bad, just average. We also pay wages on the 15th, but the wages are for the current month. In fact, many units pay the wages for the current month instead of delaying it to the next month. Why does the company pay wages around the 15th?

First of all, the Human Resources Department must conduct statistics on various data. For example, attendance is very cumbersome for large units. Salary deductions must be calculated based on leave requests, which involves the interests of each employee and must be checked clearly.

Secondly, personal tax deduction.

After the new personal income tax is implemented, we have to check the personal income tax with the tax specialist before the 15th of every month, because the current personal income tax has just been changed to the annual comprehensive income tax calculation method. Some employees The personal special deductions are constantly changing, making monthly calculations very troublesome, and the reconciliation of finances and taxes takes a certain amount of time to complete.

Third, wages are paid on the 15th neither too early nor too late.

Wages are paid in the middle of the month, neither early nor late, so there is no fault. If you pay early, you will be financially stressed, but if you pay late, the employees will be unhappy. This time is just right.

No matter what day wages are paid, companies that can pay wages on time are better companies than those units that delay payment. What is everyone's salary?

Hello, I have been working in company human resources management for more than ten years. Regarding the company’s salary payment days, there are actually many types of salary payment dates. Some are paid as early as the 15th, some are paid at the end of the month, and some are even delayed. Issued over 1 month. But it seems that most companies pay wages on the 15th. Why? Then we need to know the relevant regulations on salary payment, as well as the purpose and actual situation of the company in doing so! It’s not difficult to understand! Regulations on salary payment dates

Here we only discuss the situation of monthly salary payment, and other special methods of salary payment are not mentioned here.

1. According to relevant laws and regulations, in most cities, it is legal in principle to pay last month’s salary before the end of the month. However, if wages have not been paid for more than one month, it will definitely not work. Wages have not been paid on time. The employee can be forced to terminate the labor relationship on this ground and require the company to pay economic compensation.

2. , a small number of cities, on this basis, are more strict on salary payment dates. For example, Shenzhen stipulates that last month's salary be paid before the 7th of each month. If you encounter a special problem, you can pay last month's salary on the 12th of each month. If you encounter operating difficulties and other factors, you can pay it no later than the 22nd of each month. Last month's salary was paid recently. Why do companies like to pay wages as late as possible?

1. The company’s capital turnover and deposit interest issues. This is not difficult to understand. For companies, the later the better, especially for companies with a larger number of people. It is beneficial to keep this money in the bank for a longer time. Therefore, many companies choose the latest one within the scope of the law.

2. From the end of each month to the beginning of the next month, it is the time for the company's financial settlement. In addition, it takes a certain amount of time for the company's attendance and punching statistics, calculating wages, and checking with employees. For example, the first week of the month is used to handle attendance exceptions and check with employees, and the second week is used to calculate and pay wages. In this way, wages will soon only be paid on the 15th.

However, larger companies have a more comprehensive and complete attendance system, which will be much faster, so some wages are paid on the 12th, and some can really be paid on the 7th. Some government units can even pay wages at the end of the month or on the first day of the month, which we can only envy.

3. Very few companies pay wages before the 7th of every month. Why? Because employees with high wages often voluntarily leave the company, and late wages are paid, which is equivalent to indirectly making up for the losses caused to the company by employees who quit.

Especially for front-line workers in factories, it is often the case that they leave immediately after receiving their wages and do not come to work, because many people cannot wait that long to resign. Because if wages are paid before the 7th, some employees may not care about these 7 days of wages at all and choose to leave directly. Moreover, they can basically only work 5-6 days before the 7th. This salary is not enough for employees to care about. to make up for the losses caused to the company. But if the company pays wages on the 15th or even later, and employees want to leave without handover, then they really need to think carefully.

In fact, companies that are able to pay last month’s salary on the 15th are considered relatively normal, or even OK companies, because this is more in line with the actual situation and takes into account both the workload itself and the Solve the problem of employee self-disengagement. Over time, various companies have developed a habit of executing this way. I hope the above answers can help you!

The sooner or later the salary is paid reflects the company's comprehensive strength, values, and humanistic care. When recruiting, many HRs also regard the early salary payment as a good example of the company's welfare to attract applicants.

From the perspective of the company, the later the payment is, the more beneficial it is, which can alleviate financial pressure and earn a certain amount of interest. From the perspective of employees, the earlier the payment is, the more beneficial it is, especially for employees who are under greater pressure to repay loans. .

Preparatory work before disbursing wages includes: counting attendance, calculating performance wages if there is performance. If it is linked to the company's income and payment collection, it is necessary to wait for the financial department to provide data. Industrial enterprises also need to calculate working hours, number of pieces, etc. , and then make a salary table. After special deductions for personal income tax are implemented, the calculation is much more complicated than before. Time needs to be reserved for resignation risk management and control and company payment process approval.

Generally, enterprises have four main time periods for paying wages: 1. On the 10th of the next month, wages are paid on the previous month. Generally, in companies with strong economic strength such as high-tech companies, foreign capital, and large state-owned enterprises, this has happened The earliest company to pay wages is the 28th of the month;

2. The previous month is paid on the 10th to 15th of the following month or the 16th to 20th of the following month. Most companies are within this range. , there is no strict boundary between these two time periods. Some companies are very strong, but the approval process is particularly complicated. Some companies will pre-check whether there are any calculation errors in the personal tax system before issuing, and personal tax is generally issued every Declare before the 15th of the month;

3. From the 21st to the 25th of the following month, generally in companies where the company's performance is not very good, funds are tight, small-scale companies, or even wages are in arrears... .

Because the later the salary is paid, the more beneficial it is for the company, and the later the salary is paid, the higher the risk is for the employees.

Then why did you have to hold down wages for so long?

1. Financial statistics and salary reports take time, and the process takes a long time.

2. Suppressing wages for a period of time can stabilize and trap employees. Because no matter when they resign/change jobs, part of the employee's salary will always be in the hands of the company. This will make employees wary of losing wages and afraid to leave at will.

3. The company's funds may be tight.

4. Earn interest.

Therefore, you can tell whether a company is reliable or not from the date of salary payment.

Category A/before No. 10: mostly high-tech companies, listed companies, foreign-funded companies, and state-owned enterprises.

Category B/No. 10-15: Some A-share listed companies and companies with relatively good returns, relatively sound systems and emphasis on management.

Category C/after No. 15: mostly small businesses, especially social service industry and labor-intensive companies.

What about you? On what day was your salary paid?

The 15th should be the salary payment date for most companies. This date is actually a watershed. Financial, technology and other companies that are strong and have good welfare benefits will choose to pay wages about 5 days in advance; labor-intensive companies, especially private companies, will delay paying wages for 5-10 days; because most companies operate All of them are quite satisfactory, so they all choose to pay their wages on the 15th.

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State-owned enterprises and large group listed companies are large and powerful, with sound corporate rules, regulations and welfare measures. How often wages are paid is also determined by the rules. Mainly for some private labor-intensive enterprises, there is greater flexibility in how long wages are paid. When the benefits are good, it can basically be distributed on time. When the results are not good, it is normal to wait for 10 days and a half. I think there are two main reasons why wages are paid on the 15th.

First of all, salary accounting takes a certain amount of time, such as employee attendance registration, absence from work, late arrival and early departure, etc.; statistics on the output unit price of each worker, each batch and model; such as the basic salary of each employee, Performance pay, overtime pay; and deductions for five social insurances and one housing fund, water and electricity bills, and personal income tax. You also have to go to the tax department to file a tax return, calculate and declare personal income tax. These all take a certain amount of time.

In addition, some companies consider saving labor costs, resulting in a shortage of financial personnel. And if the company has a large number of employees, the payroll calculation will indeed take a while. In addition, the efficiency of some companies is not high to begin with, and they have to go through layers of audits. Finally, the salary process has to be signed by the boss before it is completed. It is estimated that it will last about 15 days at this time.

Secondly, it is a measure taken by some companies to retain employees and prevent them from leaving. The further wages are pushed back, the higher the cost of employees' separation. This is actually a routine used by private enterprises, especially some small private enterprises. The wages of most small businesses, such as some small factories and workshops, are paid after the 15th. There are dozens or even a dozen of them all in total. Even if you don't hire special financial personnel, the payroll calculation can be easily completed within a few days.

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The more wages are in the hands of the company, the less employees dare to change jobs at will. Especially for some companies that are not very profitable, the wages of their employees are not very good. But it is difficult to get approval to resign, and you will lose some money if you divorce. If you divorce yourself ruthlessly, the company can save another expense.

In some companies, the date of salary payment is indeed the 15th, but the salary is reduced by one and a half months. I have encountered this. In a certain city in 2003, for example, February wages were not paid until March 15th. By analogy, March wages will be paid on April 15th.

This is like what was originally a five-day, eight-hour work system, but some companies have changed to a two-shift, 12-hour work system. Moreover, there is no such thing as weekends; and what is even worse is that if the five-day and eight-hour weekend system is really implemented, many workers will not be happy, because the more overtime they can, the higher their income will be.

Thank you for being invited to answer this question.

Let’s take a look at the process from salary calculation to payment. In some companies, employees on the workshop production line must wear fingerprint cards to record attendance when commuting to and from work. If it is based on piecework, the individual's daily output multiplied by the labor price will give the individual's daily wage, which will be handed over to the personnel department by the clerk.

At the beginning of the month, the Human Resources Department submitted the employees’ time and piece-based attendance for the previous month to the Finance Department, who slowly calculated them one by one, worked out each person’s monthly salary, and then presented it to the boss for personal review and approval. sign. can be distributed into our pockets.

Why do companies generally pay wages on the 15th? If it is a large company with many employees, they will need an accounting process. As for small factories, I personally think that some are doing it to retain people. If you divorce yourself, this half month's salary will go to the boss's pocket. The author has encountered it.

Finally, let’s popularize the “Interim Provisions on Wage Payment”. Article 7: Wages must be paid on the agreed date between the employer and the worker, which is the contract signed when entering the factory. If it is three days overdue, you can complain to the local supervision team and order the employer to issue it within a time limit.

Was your salary paid on the 15th? Welcome to discuss and leave messages.

Professional HR will answer this question.

The company I work for also pays wages on the 15th. From the perspective of administrative personnel, I support paying wages on the 15th mainly for the following reasons:

1. To the administration or finance Reserve working time for personnel: It takes time to collect attendance and performance appraisal data and calculate wages accordingly;

2. Reserve time for the review process: After the salary schedule is made, it cannot be paid immediately. Follow the process, which can only be executed after the relevant person in charge signs. This process can be long or short according to the situation of different companies;

3. Reserve space for resignation risk management and control: specifically refers to resigned personnel, especially those who do not For those who say hello and leave on their own, if there are special circumstances, the salary will be delayed for half a month, and certain compensation can be made. Of course, the chance of this happening is actually very small.

The labor law stipulates that it is illegal to pay wages for more than one month. The 15th is a choice that takes into account both regulations and the actual operation needs of the company, so many companies pay wages on this date.

Senior HR, who has been deeply involved in the field of administrative personnel for many years, welcome to pay attention and discuss career life together.

The answer is relatively simple, it is to meet the needs of personal income tax collection.

According to the Personal Income Tax Law, when a resident individual obtains comprehensive income, personal income tax is calculated on an annual basis; if there is a withholding agent, the withholding agent shall withhold and pay taxes on a monthly or per-time basis; withholding The tax withheld or withheld by the obligor every month or every time shall be paid to the state treasury within the fifteenth day of the following month, and a withholding personal income tax return shall be submitted to the tax authorities.

Salaries are personal comprehensive income. As the withholding and payment agent of personal income tax, the company needs to be able to calculate and withhold personal income tax and complete the declaration and payment before the 15th of the following month at the latest. Therefore, each unit must prepare the salary slip for the previous month by the 15th of the following month at the latest. So the salary is stuck on the 15th, which is already very late. This kind of company is at best satisfactory, which is better than the company that does not pay wages on time.

The answers to the questions should end here, but some financial and taxation issues in related operations can be shared and discussed with everyone.

There is still a big difference in the accounting treatment of wages and personal taxes among companies.

For example, if the payment is made in the same month and included in the cost of the month, and the individual tax is declared and paid before the 15th of the following month, the tax and accounting are completely consistent;

The second type is calculated at the end of the month and included in the cost of the month, and is paid before the 15th of the following month. This situation resulted in tax and accounting differences under the tax policy environment before 2017, because according to the "" According to the provisions of the Enterprise Income Tax Law, only "reasonable expenses actually incurred by the enterprise related to the acquisition of income, including costs, expenses, taxes, losses and other expenses" are allowed to be deducted from the calculation of the amount of enterprise income tax payable. Therefore, although the accounting has been done correctly based on the accrual basis, since there is no actual payment, what is shown on the books is a liability. The tax department considers it to be an accrual expense, which is often not recognized in the collection of corporate income tax;

The third method is that the wages that should be paid this month will be paid in the next month and included in the costs and expenses of the next month. That is to say, the wages that should be matched with the costs and expenses of the previous month are actually included in the costs and expenses of the next month. In fact, Accountants gave up the accrual principle of accounting in order to accommodate tax collection and administration. However, the tax is satisfied, but the company's cost and expense management has a lot of troubles.

In the past, for the second and third situations, the tax department was also practical and used simple methods to resolve them. Usually, as long as the company only recorded corresponding expenses within 12 months of the year, 12 months of salary and year-end bonus are calculated only once a year. As for the vesting period of salary and bonus, we will not go into details on corporate income tax and personal income tax. Now, this problem is no longer an issue. In 2019, the country revised the "Enterprise Income Tax Law", and the above article was changed to: "The calculation of corporate taxable income is based on the accrual basis. The income and expenses belonging to the current period, regardless of whether the payment is received or paid, are regarded as Income and expenses for the current period; income and expenses that do not belong to the current period, even if the money has been received and paid in the current period, are not regarded as income and expenses for the current period.” Taxation and accounting have completely converged.

The small problems and details in work and life actually contain more or less big truths.

Because companies generally pay last month’s salary this month, all assessment indicators and attendance can be verified clearly before the 15th, and performance salary calculation data can also be released. The 15th is also the deadline for filing taxes. The company's various report data have basically been determined, so wages are generally paid around the 15th.

I am very happy to answer this question first. It is true that paying last month’s salary on the 15th of every month is a standard for most companies to send off employees. Lao Jiu has worked for many companies and units over the years, and only two did not follow this standard.

So what are the benefits to the company of paying last month’s salary on the 15th of this month?

The first, of course, is to alleviate financial pressure. We must know that the most important thing for business operations is to maintain cash flow, so having a buffer period of half a month is a considerable amount of working capital for the company, and it is both With no interest and no costs, it is naturally very cost-effective.

The second aspect is only for personnel stability, because half a month's salary is on hand. When employees resign or want to leave suddenly, they have to take this salary into consideration. This period of hesitation leaves enterprises with adequate preparations.

On the one hand, we are preparing to communicate and retain employees. On the other hand, we are also making more full preparations for employees to leave, so as to avoid any remaining problems. The handover of work and the adaptation of new employees on the job are also a powerful time node.

The third point is that it is beneficial to the smooth transition of work. Due to salary constraints, employees cannot be too casual and perfunctory during work handover. This is very beneficial for new people to take over and ensure a smooth handover and smooth transition of the work. It can minimize and reduce the impact of the company on the work due to the loss of personnel.

To sum up, it is probably these three points that determine the company’s choice of time to pay wages. Of course, it also has corresponding disadvantages. If other companies provide more relaxed policies in this regard, it will also attract talents. will be bigger.

Okay, I am Lao Jiu. I use my 20-year career experience to answer your questions. I hope my answer will be helpful to you, thank you!