Same-day payroll (also known as pay-on-demand, on-demand pay, or real-time pay) is a new style of paying employees that shortens the traditional waiting period between their work day and pay day. It rose to popularity during the COVID-19 pandemic as millions of workers suddenly needed access to their earnings in order to cover their basic household expenses.
This payment method is typically popular among younger generations of workers. In fact, data from an August 2021 survey found that 83% of US-based workers believe they should get paid at the end of each working shift.
While many payroll providers can support this type of flexible pay, additional fees may be charged to the company or employee. Companies may choose to put restrictions on any same-day payment services to limit their financial risks and liabilities.