Glossary

Bi-weekly pay

Apr 5, 2024

What is bi-weekly pay?

Biweekly pay is a method of employee payment that involves two paychecks each month. Each paycheck gets paid on the same date but is for half the amount of your regular pay. This means that employees get paid every two weeks instead of once every month. The reason most companies choose to use biweekly payments over other payment methods is that it's cheaper for them and better for employees. It's often used in the United States, Canada, and Australia.

How does bi-weekly payment works?

Bi-weekly pay is an option that many companies offer to their employees. It is a way of getting paid on a regular schedule. The dates that your employees receive their bi-weekly paycheck can vary depending on your company and how you set up your pay periods.

Benefits of bi-weekly pay

Bi-weekly payment is popular among employees because they’re easy to understand and manage, as well as being more convenient for those who are paid on commission or have fluctuating income throughout the year. Employers also benefit from bi-weekly pay because it reduces payroll costs by splitting up an employee’s monthly salary into two smaller checks each month instead of one larger one at the end of their pay period which means that employers save money on taxes for paying employees bi-weekly instead of monthly.

How much bi-weekly pay in a year?

You probably what to know how often is bi-weekly pay. Each pay period has 26 days, so there are 52 weeks in a year. This means that there are 26 bi-weekly pays per year, which is why you may see references to 26 bi-weekly pays or 26 BPPs (bi-weekly pay periods).

How to calculate bi-weekly pay

Here is how to calculate bi-weekly pay: you need to divide the annual salary by 26. This will give you your monthly salary and then multiply it by two.

For example: If an employee gets $50,000 per year and gets paid every other week (26 times per year), then his or her biweekly pay is $2,083 ($50k/26).

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