Waiting for payday comes at a cost: New Dayforce research

In a world where money moves at the speed of a tap or swipe, most workers still wait two weeks – or longer – to access the money they’ve already earned. This isn’t just a matter of convenience. For millions of people, it’s the difference between paying a bill on time and overdrafting, between managing anxiety and spiraling into stress, between surviving and slipping further into debt. 

The Freedom of Pay, a new study from the Dayforce WorkWell initiative conducted in partnership with SSRS, takes a closer look at how pay frequency shapes workers’ lives far beyond payday. It asks a simple but overlooked question: What would it mean for workers to get paid more often? The answers paint a clear picture – one where financial stability, mental health, and even fairness in the workplace are all deeply tied to how and when people get paid. 

Read the full report 

The hidden cost of outdated pay cycles 

Despite the rise of instant payments in nearly every other area of life, 77% of full-time workers in the U.S. are still paid only once or twice per month. That means earned wages often sit in employer accounts while workers juggle overdue bills, rack up credit card debt, or turn to payday lenders just to bridge the gap. Infrequent pay doesn’t just delay access to money – it delays peace of mind.  

Many workers are essentially forced to act as their employers’ involuntary lenders, waiting for access to wages they’ve already worked for. The result? A fragile financial balancing act that too often ends in stress, debt, or desperation. 

What more frequent pay could change 

The Freedom of Pay study shows that when workers can access their pay more often, they gain more than just cash flow. They gain greater agency and control over their lives. Here are some areas where workers would benefit most: 

Financial health 

For workers with poor financial health, small shifts in pay frequency could make a huge difference. Forty percent of all surveyed workers said increasing their pay frequency would help them manage paying bills, but that number rose to 61% for workers who rated their financial health as poor. Paying bills on time means avoiding late fees and even payday loans. It’s not about instant gratification – it’s about basic financial stability. 

Mental health 

Our study found a clear connection between financial pressure and mental wellbeing. As much as 43% of all workers surveyed said more frequent pay would be very or extremely helpful to their mental health, and that number rose to 55% among those  who reported  struggling with it. Anxiety, stress, and burnout are compounded by not knowing if your next paycheck will come in time to keep the lights on or put food on the table. 

More predictable spending 

Getting paid more often doesn’t just help in emergencies – it supports smarter, more predictable spending overall. Workers who are paid weekly or biweekly are better able to line up income with recurring expenses like rent, groceries, childcare, or prescriptions. That consistency matters, especially for families living paycheck to paycheck. 

It’s a matter of equity, too 

The report also surfaces important insights about who needs faster pay the most. 

Being paid at least once a week was especially important for Black and Latino respondents (66% of whom wanted this option) and respondents under 30 (63% of whom wanted the same). Both groups were also more likely to report that this pay schedule would be very or extremely beneficial to their mental wellness.  

These aren’t just isolated stats – they reflect the very real needs of different people and reveal a powerful opportunity to make pay systems not just faster, but fairer. 

This isn’t a perk – it’s a necessity 

The conversation around pay frequency is often framed as a benefit – something “nice to have” for employees. But The Freedom of Pay study tells a very different story. For many workers, waiting two weeks or more to get paid isn’t just inconvenient. It might even  hurt them and their families. 

Many leaders are fully aware that the negative impacts of financial stress don’t stop with their workers’ personal lives. Our 2024 Conquering the frontline manager complexity crisis study found that an incredible 49% of executives agree that financial stress often or very often prevents their employees from doing their best work. In other words, outdated pay schedules come at a cost to employers, too. That’s why Dayforce created the WorkWell initiative: to surface the often-invisible connections between work, financial health, and personal wellbeing. The Freedom of Pay study is a key part of that work,shining a light on the barriers many workers face and offering insight into how organizations can remove them. 

What employers can do 

Modern payroll technology makes it possible to rethink old assumptions. Employers now have the tools to offer flexible, frequent, or even on-demand pay without sacrificing compliance or accuracy. But the shift isn’t just about software. It’s about mindset. It’s about recognizing that financial wellness is foundational to employee wellbeing – and that the timing of a paycheck can either reinforce or relieve stress. For employers, moving toward more frequent pay is one of the most tangible ways they can make work life better.  

Let’s stop making workers wait 

No one should have to choose between making rent and buying groceries because payday is still a week away. It’s time to retire the outdated idea that rigid pay schedules are the norm and  replace them with systems that reflect the needs of today’s workforce. Because when workers can access their money, they can also access something far more valuable: peace of mind. 

Read the full report