What is different pay frequencies? The businesses pay their employees based on certain pay periods. The employers have the right to pay their employees based on their contract.
The employment contracts usually point out how often an employee is going to get paid. The different kinds of pay frequencies is monthly, semi-monthly, bi-weekly, and weekly. While monthly and weekly pay periods make sense as you get paid once every month or week, the bi-weekly and semi-monthly pay frequencies are getting mistaken often.
What is bi-weekly pay frequency?
The bi-weekly pay frequency means the employee will get paid once in every two weeks. This means the employee will get paid for every two weeks, totaling at 26 payments every year.
What is semi-monthly pay frequency?
The semi-monthly pay frequency and bi-weekly pay frequency is very similar but work differently. Instead of one payment in two weeks, the payment is divided two times a month. Generally, employers who pay their employees semi-monthly, the employee receives a payment on the first day of the month and the last day of the month. If the business you’re working at requires more time to process payroll, this can be the 5th day of the month, and the 20th day of the month.
It entirely depends on how the business processes payroll. So that’s the difference between semi-monthly and bi-weekly pay frequencies. Just for those who might need it though, monthly payments mean you get a payment once a month and weekly payments mean you get a payment once a week.