Indian Companies Adopting Global Standard of Weekly Salary Payments

The once a month salary payment cycle that has been the norm in India for decades is now undergoing a gradual but steady shift. An increasing number of companies in India are switching to a weekly payroll system as opposed to the monthly paycheck. This change aims to bring India in line with global payroll best practices followed in countries like the US and UK.

The roots of this transition can be traced back to early 2010s when high growth startups like Flipkart, Ola, Swiggy, Zomato and Paytm started adopting weekly salary payments. Attracted by the benefits, more new age technology companies followed suit. From just a handful of firms a decade back, now over 50 Indian startups and tech companies pay their employees on a weekly basis.

Seeing the positive impact, traditional corporates and larger companies are also now joining the weekly payroll bandwagon. Top Indian conglomerates Tata Group, TVS Group and Aditya Birla Group have already made the shift for some business verticals. Leading IT services firms Wipro and Tech Mahindra also pay weekly salaries to thousands of employees. Manufacturing companies like Jindal Steel, retail firms like V-Mart and agri business companies like UPL have implemented weekly payroll. The list continues to grow as more employers realize the advantages.

For employees, the biggest benefit of weekly payments is improved cash flow. Salary paid every week allows better budgeting to manage monthly expenses like rent, EMI payments, school fees etc. It also provides flexibility to deal with unexpected costs. The consistent weekly income stream is a boon for contract workers too. At the same time, processing smaller payrolls weekly reduces burden and leaves less room for payroll errors.

With digitization, the shift has been facilitated by new age fintech apps that allow seamless bank transfers on a weekly basis. HR management platforms now also provide easy tools to manage weekly payroll smoothly across large workforces.

The weekly system is win-win for both employers and employees. Which is why an increasing number of Indian companies are now adopting this global best practice. While the Indian workforce is accustomed to monthly pay, the advantages of weekly payroll are too compelling to ignore. This marks a progressive shift in compensation practices as India Inc aims to empower employees with flexible, timely payments.