Getting paid roughly every two weeks is a standard many American workers have become accustomed to. But this regular pay cycle comes in two varieties, each with their own schedule that differs slightly from the other. In this blog, we'll review the key differences and the pay schedules for these two cycles: bi-weekly and semi-monthly.
Difference Between Semi-monthly and Bi-weekly Pay
While we’ve talked about it in a previous article, we’ll touch base here again on the key differences. Semi-monthly pay refers to a pay schedule where employees are paid twice a month, typically on specific dates such as the 15th and the last day of the month. Bi-weekly pay, on the other hand, means employees are paid every two weeks, usually on the same day of the week, such as every other Friday.
The benefit of semi-monthly pay is that it provides a predictable payment schedule, making it easier to plan and budget for monthly expenses. Employees can expect consistent paychecks on set dates, which can help with financial stability. However, one potential disadvantage is that the number of workdays in each pay period may vary, resulting in slightly different amounts received in each paycheck. Finally, another thing to keep in mind is if the 1st or the 15th falls on a weekend or holiday, paychecks can be delayed to the next business day.
Bi-weekly pay, on the other hand, offers the advantage of more frequent paychecks. This can be beneficial for individuals who need a regular influx of funds and prefer a shorter pay cycle. It can also align well with certain monthly expenses, such as rent or mortgage payments. However, a potential drawback is that because the paychecks are more frequent it amounts to 26 pay periods in a year, meaning each paycheck may be slightly smaller than semi-monthly pay, which has only 24 pay periods.
Semi-monthly and Bi-Weekly Pay Calendars for 2024
In case you need a handy chart with the paycheck dates, we have you covered below. You can also inquire with your employer's payroll department if you're unsure which cycle you're on, as well as request an official paycheck calendar if available.
* These dates are meant to be a directional guide. Pay dates may vary by employer, make sure to check with your provider for an accurate calendar.
If you’re paid bi-weekly, some months you will see three paychecks, while the others will only have two. Here are the specific dates for bi-weekly pay if the pay calendar starts on a Sunday and ends on a Saturday, with a pay date on Fridays:
These dates are meant to be a directional guide. Pay dates may vary by employer, make sure to check with your provider for an accurate calendar.
Wrapping Up
Employers choose between bi-weekly and semi-monthly pay periods based on various factors, including administrative convenience and employee preferences. It’s important to know what your employer’s pay schedule is so that you can budget efficiently. We have a lot of resources to help you improve your financial wellness, head over to our blog for more!
