Employees will receive a paycheck every week which will make it easier for them to schedule bill payments and organise their personal budget.
Indiamart will pay its employees on a weekly basis
IndiaMart has taken the initiative to disburse the salaries on a weekly basis rather than monthly taking into account the benefits to the employees, their preferences as well as the changing dynamics of the global economy since weekly payments help employees meet their real-time fiscal obligations. “This is especially relevant in light of the current pandemic where millennial workers, who in many instances, live on their own away from home, struggle financially with their once-a-month pay-checks,” said Dinesh Gulati, founder and CEO of IndiaMart.
The company has 2,724 permanent employees and 836 employees on a contractual basis.
Weekly payouts exist in countries like New Zealand, Australia, Hong Kong, and the US, especially for hourly employees. However, Indiamart’s move triggered a debate on Twitter on whether such weekly payouts would result in better cashflows for employees or whether it would result in more spending and less savings as employees will get a lumpsum every week as opposed to end of the month. Others were of the view that it might lead to tax compliance problems while some thought it was a great initiative to retain talent.