Semi Monthly Pay

Semi-monthly pay is a payment schedule where employees receive their salary or wages twice a month, typically resulting in 24 pay periods per year.

Under this system, payments are usually made on specific days of the month, typically either on the first and the fifteenth of the month or on the fifteenth and the last day of the month. This can vary slightly depending on weekends and holidays, but generally, the structure remains consistent throughout the year.

Employers often use semi-monthly pay to streamline payroll processing and provide employees with a regular and predictable payment schedule, which can help in budgeting and financial planning.

How does semi-monthly pay work?

Here is an overview of how this payment schedule works:

• Pay periods: Every month is divided into two pay periods (e.g., fixed dates like the 1 st and 15 th of the month).
• Monthly pay: An employee’s monthly salary is split into two paychecks. For example, with a monthly salary of $4,000, the semi-monthly pay would be $2,000 for each payday.
• Yearly paychecks: In a year, employees will receive 24 paychecks.

Biweekly versus semi-monthly pay

Although both of these payment schedules occur twice a month, there are some important distinctions to consider.

For semi-monthly pay, employees receive their salaries in two equal installments a month. The dates are typically on the 1 st and the 15 th or the 15 th and the last of the month. The specific days for payment may vary.

For biweekly pay, employee receive their salary every two weeks, which results in 26 paychecks per year. Typically, a biweekly payroll occurs on a specific day (e.g., every other Friday).