February 9, 2026
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How a 4 Day Week Actually Affects Salaries & Pay

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So your company is floating the idea of a four-day workweek. Or maybe you're job hunting and see it listed as a perk. The first question that pops into your head isn't about productivity or burnout—it's about your paycheck. "Will I get paid less?" It's a perfectly rational fear. We've been conditioned to believe pay equals time spent at a desk.

But the entire philosophy behind the modern four-day week movement flips that on its head. The goal isn't to cram five days of stress into four. It's to achieve the same (or better) output in less time through focused work, eliminated waste, and better processes. Your salary, in an ideal adoption, should reflect your output, not your attendance.

Let's cut through the hype and look at the real financial mechanisms at play.

The Three Salary Models: How Pay Gets Calculated

When a company switches schedules, it typically follows one of three financial blueprints. Understanding which one your employer is using is crucial.

Model 1: 100% Pay for 100% Output (The "Gold Standard")

This is the model championed by organizations like 4 Day Week Global. The deal is simple: you get 100% of your former salary for delivering 100% of your former output, but in 80% of the time. Your hourly rate effectively goes up by 25%.

The Logic: Companies bet that by cutting unproductive meetings, reducing context-switching, and empowering employees, they can get the same work done. It's a productivity play, not a labor cost cut. A landmark UK trial involving 61 companies found that 92% of participating organizations planned to continue the four-day week policy post-trial, with no reduction in pay.

The mental shift here is massive. You're not being paid for your time; you're being paid for your results. If you finish your core responsibilities by Thursday afternoon, Friday is yours. No guilt, no checking Slack.

Model 2: Pro-Rata Pay (The "Hours-Based" Cut)

This is the straightforward, often disappointing model. If you work 80% of the hours (4 days instead of 5), you receive 80% of your former salary. Your hourly wage stays the same.

You see this more often in:
- Shift work where coverage is physically needed.
- Part-time transitions where an employee voluntarily reduces hours.
- Companies that fundamentally view work as a pure time-for-money exchange.

Honestly, this model misses the point of the modern four-day week movement. It treats it as a simple reduction in labor, not a re-engineering of work. If this is the only option on the table, it's worth asking if the company is truly committed to the cultural change needed to make fewer hours sustainable.

Model 3: The Hybrid or Graduated Model

Some companies get creative. They might offer 100% pay for a trial period (6-12 months), after which pay is adjusted based on performance metrics. Others offer a 90% pay for 80% hours model as a compromise. I've also seen "summer hours" versions or an extra day off every other week.

These models are messy. They can feel unstable. The key is clarity on the metrics. If pay after month 12 is tied to "team productivity staying above 95% of pre-trial levels," that's a measurable, fair goal. If it's vague, be wary.

The big takeaway? The dominant trend in formal trials and progressive adoptions is Model 1: 100% pay. The pro-rata model is becoming the exception, not the rule, for professional knowledge work.

Case Studies: What Actually Happened to Paychecks

Let's move from theory to reality. Here’s what happened in some of the most publicized experiments.

Company / Trial Industry Salary Model Key Outcome on Pay & Business
Icelandic Government Trials (2015-2019) Public Sector (Offices, Hospitals) 100% pay for ~80% hours No reduction in pay. Productivity remained the same or improved. This massive study, covering 1% of Iceland's workforce, is a foundational text.
Unilever New Zealand (2020-2023) Consumer Goods (Corporate) 100% pay for 100% output Salaries unchanged. After an 18-month trial, the company reported a 34% drop in absenteeism and stress. Revenue grew. They made the policy permanent.
Microsoft Japan (2019 "Work-Life Choice Challenge") Technology 100% pay (special summer project) Sales per employee jumped 40% during the trial month. It proved the productivity potential, though it wasn't adopted year-round.
UK 4 Day Week Pilot (2022, 61 companies) Various (Tech, Marketing, Services) 100% pay for 100% output Company revenue rose 1.4% on average. A staggering 92% of firms continued the policy. Zero reports of across-the-board pay cuts.
Small Service Business (e.g., a marketing agency) Professional Services Often Hybrid Might keep salaries at 100% but adjust client retainers or project timelines. The financial impact is passed to operations, not employee pay.

Notice a pattern? The successful, large-scale trials protect take-home pay. The financial benefit for the company comes from lower overhead (utilities, sometimes less turnover), increased productivity, and better talent attraction—not from slashing payroll.

I spoke with a manager at a UK design firm that was part of the big trial. Their biggest fear wasn't productivity; it was client perception. "We had to explicitly tell clients, 'Our team works four days, but your project won't slow down. We're more focused.' And it was true. We hit deadlines faster. Pay was never on the chopping block."

Will Your Industry Cut Your Pay? A Realistic Breakdown

The impact on your salary isn't just about company philosophy; it's about the nature of the work itself.

Knowledge & Output-Based Work (Best Case for 100% Pay)

Software development, design, marketing, content creation, finance (analyst roles), many consulting roles.
These roles are prime candidates. Work is project-based, measured in deliverables, code commits, campaigns launched, reports completed. If you can finish the sprint in four focused days, why take five? Salaries here are most likely to stay intact in a well-run shift.

Client-Facing & Coverage-Based Work (The Tricky Middle)

Healthcare (non-emergency), retail management, customer support, education.
Here, the challenge is coverage. A clinic needs to be open 5 days a week. The solution isn't a universal Friday off, but a staggered schedule. This often requires hiring (increasing total payroll) or complex rotations. Pay might stay the same per individual, but the company's overall labor cost could rise. This is where you might see more hybrid models or slower adoption.

Hourly & Shift Work (Most Challenging for 100% Pay Model)

Manufacturing line work, hospitality, retail floor staff, call centers with strict hourly coverage.
If the business needs a body present for 50 hours a week, reducing an individual's hours to 32 likely means hiring more people. The pro-rata model (80% hours, 80% pay) is more common here. However, some unions are negotiating for a 32-hour workweek with 40 hours of pay, arguing that productivity gains from automation should benefit workers. This is a frontline battle.

A Common Mistake: People assume "four-day week" means everyone is off on Friday. In reality, for coverage-based businesses, it usually means a shorter workweek per employee (e.g., 4x8 hour shifts) with staggered days off across the team. Your pay model is tied to how your specific role's coverage is solved.

How to Talk About Salary When the Schedule Changes

Let's get practical. Your company announces a four-day week pilot. What do you say?

Don't lead with fear. Don't blurt out, "Is my pay getting cut?" Frame it as a collaborative problem-solving discussion.

1. Ask for the official model first. "Can you share the details on how compensation will be structured during the pilot? Is it the 100-80-100 model (100% pay, 80% time, 100% output) we've seen in other trials?" This shows you're informed.

2. If they propose a pro-rata cut, pivot to value. "I understand the hourly perspective. My goal is to ensure my output and responsibilities remain at 100%. I'm confident I can reorganize my work to maintain that. Could we tie my compensation to maintaining my current output levels, rather than a straight hour reduction?"

3. Prepare a personal productivity plan. Before the talk, jot down where you lose time now—redundant meetings, constant email checks. Show how you'll reclaim that time. You're not just asking to keep your pay; you're presenting a business case for why you can.

4. Consider the total package. If they insist on a 5-10% pay adjustment (a hybrid model), weigh it against the value of a full extra day off. For many, a 10% pay cut for a 50% increase in weekend time is an incredible trade. Run your own budget numbers.

The biggest leverage you have? The job market. Companies using the 100% pay model have a staggering advantage in hiring. If your company cuts pay, they risk losing their best people to competitors who won't.

The Hidden Financial Factors Nobody Talks About

Salary is just one line on your financial statement. A four-day week messes with other numbers, for better and worse.

Potential Upside:
- Side Income: That fifth day is a massive opportunity for freelance work, a side business, or deep upskilling that leads to a higher-paying role later.
- Reduced Costs: Less commuting (gas, transit, wear on your car), fewer impulse lunches out, less need for expensive "stress relief" spending.
- Career Longevity: Burnout ends careers. Sustained lower stress could mean higher performance over decades, leading to better promotions and bonuses.

Potential Downside & Complexities:
- Benefits: In the US, health insurance is often tied to working 30+ hours a week. A move to 32 hours is usually safe, but dropping to 28 might jeopardize it. This is a critical HR question.
- Bonuses & Overtime: How is overtime calculated now? If your salaried role occasionally required weekend work, does that change? Are performance bonuses recalibrated for the shorter timeframe?
- The Intensity Trap: The worst outcome is 100% of your old pay for 100% of your old work crammed into 80% of the time, leading to four days of pure burnout. This is why process change, not just calendar change, is non-negotiable.

One finance director at a tech company told me their most surprising cost saving wasn't electricity; it was recruiting. "Our offer acceptance rate for candidates tripled. We stopped losing people to burnout. The savings on recruiter fees and onboarding easily offset any perceived 'lost' productivity time."

The Bottom Line on Your Bottom Line

The question "How does a 4 day week affect salaries?" has a clear emerging answer: In progressive, output-focused companies, it doesn't reduce them. It decouples pay from time and reattaches it to value.

The pro-rata pay cut model is the old way of thinking, a holdover from the industrial age. The future of work—at least for knowledge workers—is moving firmly toward the 100-80-100 principle.

Your action item is simple. If your company is considering this shift, engage proactively. Don't assume a pay cut. Come to the table informed about the dominant models, ready to discuss how you'll deliver your value in less time. Advocate for the processes (meeting reductions, focus blocks, email protocols) that make it possible to do great work without a frantic pace.

Your salary on a four-day week isn't just a number on a contract. It's a statement about how your company measures your worth. Push for it to be measured by what you achieve, not how long you sit at your desk.