To help keep inflation at bay, staff from a London financial services firm were offered the chance to be paid in gold instead of pounds and pence.
Cameron Parry, CEO of TallyMoney, is believed to have been the first employer to test a gold payroll. However, other companies are beginning to offer crypto to employees.
Parry spoke exclusively to city A.M. and said that the cost of living is getting worse. It didn’t make economic sense to offer pay increases in pounds when its value is being reduced more every day. It was like applying a bandage to an open wound.
Parry explained that gold is an inflation hedge that has been tested over time and has maintained its purchasing ability for millennia.
“At times such as these, where conventional money is slowly losing its purchasing power, gold gives people the best chance to keep ahead of inflation.”
The Bank of England anticipates that inflation will rise to 10%, but gold’s value has increased 11% since the start of the year.
Parry stated that the purchasing power of the Pound has been significantly reduced in recent months while the price of gold continues to rise steadily.”
He stressed that “there are huge questions about the future central bank-created currency right now” and that cryptocurrencies have been grabbing all of the headlines in recent years. However, for many people, the proven appeal of gold just makes sense.
Gold payroll scheme
Parry is now piloting the gold payroll program among senior staff, and will soon make it available to all employees. Parry has already signed up for the scheme.
Parry has more than 20 employees and states that anyone who wishes to keep receiving their wages in pounds can do so.
PAYE taxes will be applied as usual, but the exchange rate of gold to pounds is taken into consideration.
Ella Fraser (25-year-old digital marketing manager at Parry) said that the price of everything is rising and that young people are becoming more concerned about the value of the pound.
For example, a monthly gross salary of £4,000 that was previously £4,000 could be described as 82,000 gross – 82,000 milligrams of gold – on the payslip.
Ella Fraser (25-year-old digital marketing manager) said that the price of everything is rising and that young people are becoming more concerned about the value of the pound.
She concluded that bosses should be looking for innovative ways to help their employees through difficult times. Having the option to agree on a salary in tally is an excellent way to do this.
