Side by side
| Biweekly | Semi-monthly | |
|---|---|---|
| Paychecks per year | 26 (27 in some years) | 24 |
| Paycheck on $60,000 (gross) | $2,307.69 | $2,500.00 |
| Pay day | Same weekday every other week | Fixed dates |
| “Extra” paychecks | Two months a year have three paydays | Never |
| Common for | Hourly workers | Salaried workers |
Budgeting tips
- Biweekly: budget monthly bills on two paychecks; treat the two “third paycheck” months as savings boosts.
- Semi-monthly: paydays may fall on weekends or holidays and arrive a day early or late.
Taxes
Your annual tax is the same either way: withholding is just divided differently. See your exact numbers in the paycheck calculator.
Hourly pay: how the hours split
On a biweekly schedule, each check covers exactly 80 hours for a full-time worker (two 40-hour weeks). At $20 an hour, that is $1,600 before taxes, every time.
On a semi-monthly schedule, each period covers about 86.67 hours on average (2,080 hours a year divided by 24), but the real number of workdays changes from period to period. That is one reason hourly jobs tend to use weekly or biweekly pay.
Overtime is still weekly
Under federal law, overtime for non-exempt workers is worked out per workweek (hours over 40 in a week), whatever the pay schedule. A semi-monthly or biweekly check does not change that.
How often must employers pay?
Pay frequency rules are set by each state. Some states require at least twice-monthly pay for most workers; others allow monthly pay. Your state labor department's website lists the rule.
The 27-paycheck year
Biweekly pay produces a 27th payday about once every 11 years, when the calendar lines up. If you are salaried, your employer may spread your salary over 27 checks that year, so each one is slightly smaller.
