Staff at a financial services firm in the City of London have been offered the possibility to get paid in gold rather than pounds and pence — to help them keep ahead of inflation.
TallyMoney CEO Cameron Parry is understood to be the first employer in the country to trial a gold payroll, though other companies are now beginning to offer crypto to their staff.
Speaking exclusively to City A.M. this afternoon, Parry said that “with the cost of living crisis going from bad to worse, it didn’t make sense to continue offering pay hikes in pounds when its value is being eroded further with every passing day. It was like putting a bandaid over an open wound.”
“We’re seeing the spending power of the pound continue to decline at an alarming pace whereas gold has been steadily rising in value throughout 2022.”TallyMoney CEO Cameron Parry
“Gold is a time-tested inflation hedge and has maintained its purchasing power for millennia,” Parry explained.
“At times like these, when conventional money is steadily losing its buying power, gold offers people the best chance of keeping ahead of inflation.”
While the Bank of England expects inflation to surge to 10 per cent, by contrast the value of gold has risen 11 per cent since the beginning of the year.
Parry added that “the purchasing power of the pound has been eroded significantly in recent months, while the value of gold continues to steadily rise.”
“There are big question marks over the future of central bank-created currencies right now, and while cryptocurrencies have been grabbing all the headlines in recent years, to a lot of people the tried and tested appeal of gold just makes more sense,” he stressed.
Gold payroll scheme
Parry has begun piloting his gold payroll scheme among senior staff and will soon offer it company wide. He himself has signed up to the scheme.
Parry employs more than 20 staff and says that those who wish to continue receiving their wages in pounds will be allowed to do so.
PAYE taxes are applied as normal, with the exchange rate for gold to pounds taken into account.
As an example, a gross monthly salary that was previously £4,000 would be defined as 82,000 tally gross – 82,000 milligrams of gold – on their payslip.
“Gold goes much further when it’s exchanged for goods and services that are priced in pounds and pence.”TallyMoney CEO Cameron Parr
Parry’s employee, digital marketing manager Ella Fraser, 25, said: “These days the price of everything seems to be going up, and young people are increasingly worried about the value of the pound in their pocket.”
“I think it’s important for bosses to look at more innovative ways at helping their staff through these tough times, and having the option to agree your salary in tally is a great way of doing that,” she concluded.