Bimonthly vs. Biweekly Pay: Advantages and Disadvantages

What Is Biweekly Pay?

Biweekly pay means employees receive a paycheck every two weeks, typically on the same weekday.

For example, an employer may process payroll every other Friday. Because a year contains 52 weeks, a biweekly schedule normally creates 26 pay periods.

Most months contain two biweekly paydays, while two months usually contain three. These additional pay periods do not increase an employee’s annual salary. They divide the same annual amount across 26 checks instead of 24.

What Is Bimonthly Pay?

The word “bimonthly” can mean twice per month or once every two months, which can cause confusion. In payroll, employers generally use it to mean twice per month. “Semimonthly” is the more precise term.

A semimonthly schedule normally has 24 pay periods per year. Employers may pay employees on:

• The 1st and 15th
• The 15th and final day of the month
• Two other fixed dates each month

Because these dates can fall on different weekdays, the employer may need to adjust payments that occur on weekends or holidays.

Bimonthly vs. Biweekly Pay: Key Difference

The primary difference is the number and timing of paychecks:

• Biweekly pay provides 26 paychecks per year.
• Bimonthly or semimonthly pay provides 24 paychecks per year.
• Biweekly pay usually occurs on the same weekday every two weeks.
• Bimonthly pay usually occurs on two fixed calendar dates.
• Biweekly paychecks are slightly smaller for salaried employees.
• Bimonthly paychecks are slightly larger.

Employees should receive the same annual salary regardless of which schedule the employer uses, assuming no other compensation factors change.

The distinction is significant in practice: 2022 U.S. Bureau of Labor Statistics data cited by Indeed showed that 45.7% of private establishments used biweekly payroll, compared with 22.4% using semimonthly payroll. Indeed’s payroll comparison explains the same 26-versus-24-pay-period distinction.

Biweekly and Bimonthly Pay Example

Suppose an employee earns a gross annual salary of $52,000.

With biweekly pay:

$52,000 ÷ 26 = $2,000 gross pay per paycheck

With bimonthly pay:

$52,000 ÷ 24 = approximately $2,166.67 gross pay per paycheck

The semimonthly paycheck is larger, but the employee receives two fewer checks. In both cases, the total gross annual salary remains $52,000.

Taxes, insurance, retirement contributions and other deductions can affect the employee’s actual take-home amount.

Advantages of Biweekly Pay

Consistent weekdays

Biweekly employees are usually paid on the same day of the week, such as every other Friday. This regular pattern can make it easier to anticipate deposits and schedule bill payments.

More frequent paychecks

Employees receive 26 paychecks rather than 24. In two months of the year, they generally receive three checks.

Some employees use the third check to increase savings, reduce debt or cover an irregular expense.

Alignment with weekly work cycles

A biweekly period contains two complete seven-day workweeks. This structure can simplify the tracking of regular hours and overtime for hourly employees.

Predictable payroll periods

Each pay period is the same length. This can make timesheet deadlines and work-hour reporting easier for employees and managers to understand.

Familiarity among employees

Many employees are already familiar with receiving pay every other week. Using an expected schedule can reduce confusion during onboarding.

Disadvantages of Biweekly Pay

More payroll runs

Employers process payroll 26 times per year rather than 24. Depending on the payroll provider, the additional runs may create extra administrative work or fees.

Three-paycheck months

Two months generally contain three payroll dates. Employers need to plan cash flow for these periods, particularly when payroll represents a large portion of operating expenses.

Smaller individual paychecks

Salaried employees receive slightly less in each biweekly paycheck than they would under a semimonthly schedule.

The annual amount is the same, but employees who focus on individual check size may prefer semimonthly pay.

More complicated monthly deductions

Health insurance and other benefits are often priced monthly. Employers must decide whether to divide deductions across 26 checks or exclude them from the two additional checks.

The method needs to be communicated clearly so employees understand why deductions may vary.

Monthly budgeting can feel less consistent

Employees receive pay on different calendar dates each month. Although the weekday remains predictable, the checks do not always align with fixed monthly bills.

Advantages of Bimonthly Pay

Larger paychecks

A salaried employee’s annual pay is divided into 24 rather than 26 payments, resulting in a larger gross amount per paycheck.

Fixed calendar dates

Employees know that they are generally paid on two specific dates each month. This can make it easier to align income with recurring expenses such as rent, loan payments and subscriptions.

Fewer payroll runs

Employers process payroll 24 times per year. This can slightly reduce administrative work and per-run processing costs.

Easier monthly benefit deductions

Monthly deductions can be divided evenly between two paychecks. For example, a $400 monthly insurance deduction can be split into two $200 deductions.

Consistent monthly payroll planning

Employers process the same number of payrolls every month. They do not need to prepare for occasional three-paycheck months.

Disadvantages of Bimonthly Pay

Paydays fall on different weekdays

The 15th may fall on a Monday during one month and a Thursday during another. This can make payment processing and employee budgeting feel less predictable.

Weekend and holiday adjustments

If a fixed payday falls on a weekend or public holiday, the employer may need to move it to an earlier or later business day.

The organization should have a clear policy explaining how these changes work.

Different pay-period lengths

One semimonthly period may contain 15 days, while another contains 16. February can create even shorter periods.

This does not normally affect fixed salaried pay, but it can complicate calculations for hourly employees.

Overtime calculations may be more difficult

A semimonthly pay period does not align perfectly with complete workweeks. Because overtime is often calculated according to defined workweeks rather than pay periods, payroll teams may need to track and allocate hours carefully.

Less frequent payments

Employees receive 24 rather than 26 paychecks. Although each check is larger, some employees may prefer receiving income every two weeks.

Biweekly vs. Bimonthly Pay for Hourly Employees

Biweekly payroll is often easier for hourly employees because each period covers two complete workweeks. Employers can collect timesheets, calculate regular hours and determine weekly overtime within a consistent period.

Semimonthly payroll can be more complex. A pay period may begin or end in the middle of a workweek, requiring payroll staff to separate the pay period from the legally defined workweek.

Employers still need to follow applicable wage and overtime laws regardless of the payroll frequency they select.

Biweekly vs. Bimonthly Pay for Salaried Employees

Both systems can work effectively for salaried employees.

Biweekly pay provides smaller, more frequent checks and two months with three paydays. Semimonthly pay provides two larger checks every month, often on fixed dates.

For salaried employees, the choice usually affects timing rather than total annual compensation.

Which Schedule Is Better for Employees?

The answer depends on individual preferences.

Biweekly pay may be more suitable for employees who:

• Prefer being paid on the same weekday
• Budget in two-week cycles
• Like receiving 26 checks per year
• Want occasional three-paycheck months

Bimonthly pay may be more suitable for employees who:

• Prefer two larger checks each month
• Plan expenses around fixed calendar dates
• Want benefit deductions divided evenly
• Budget monthly rather than weekly

Neither system automatically produces more annual income.

Which Schedule Is Better for Employers?

Biweekly payroll may be more suitable when:

• The workforce contains many hourly employees
• Overtime is common
• Timesheets follow weekly cycles
• Employees expect every-other-week pay

Bimonthly payroll may be more suitable when:

• Most employees receive fixed salaries
• Benefit deductions are calculated monthly
• The company wants fewer payroll runs
• Monthly cash-flow consistency is important

Before selecting a schedule, employers should also review applicable wage-payment laws. Some jurisdictions regulate how frequently different categories of employees must be paid.

How To Choose a Payroll Schedule

Review legal requirements

Confirm which payroll frequencies are permitted for your employees’ locations and job classifications.

Consider the workforce

Determine whether most employees are hourly, salaried or a combination. A schedule that works well for salaried staff may create unnecessary complexity for hourly workers.

Calculate processing costs

Review payroll provider fees, internal administrative time and the effect of additional annual payroll runs.

Evaluate cash flow

Make sure the organization can meet payroll obligations during three-paycheck months if it selects a biweekly schedule.

Review deductions and benefits

Decide how health insurance, retirement contributions and other deductions will be divided across pay periods.

Ask employees for feedback

Employee preference should not be the only factor, but feedback can reveal budgeting concerns and potential communication problems.

Communicate the schedule clearly

Tell employees:

• How often they are paid
• The normal payday
• How holidays affect payment
• How deductions are calculated
• When timesheets are due
• Whom to contact with payroll questions

How To Budget With Biweekly Pay

If you receive biweekly pay, build your regular monthly budget around two paychecks. Treat the two additional annual checks as separate rather than depending on them for normal monthly expenses.

You could use an additional check for:

• Emergency savings
• Debt payments
• Annual insurance
• Vehicle maintenance
• Retirement contributions
• Education expenses
• Planned travel

Remember that the check may still include deductions, so review the actual take-home amount before allocating it.

How To Budget With Bimonthly Pay

Start by matching each of your two monthly checks with specific expenses.

For example:

• First check: housing, utilities and insurance
• Second check: transportation, food, savings and debt payments

Because pay dates can fall on weekends or holidays, keep a small balance available to cover bills if the deposit date moves.

Create Clear Payroll Presentations With Dokie

Payroll teams may need to explain payment schedules, deductions and policy changes to employees or company leaders. Dokie can turn payroll documentation, policy notes and existing materials into structured presentations that communicate important dates, examples and responsibilities clearly.

Dokie also supports custom templates and editable PowerPoint exports, helping HR and finance teams keep payroll presentations aligned with company branding. Users can refine the generated slides and add organization-specific details before presenting a new schedule or onboarding employees.

Frequently Asked Questions

Is bimonthly the same as semimonthly?

Bimonthly can have two meanings, but in payroll it commonly refers to being paid twice per month. Semimonthly is the clearer term because it specifically means two pay periods each month.

Do biweekly employees earn more?

No. A salaried employee normally receives the same annual amount under either schedule. Biweekly employees receive 26 smaller checks, while semimonthly employees receive 24 larger checks.

Why are there three biweekly paychecks in some months?

A biweekly schedule creates a payday every 14 days. Because this produces 26 paydays per year, two months generally contain three paydays instead of two.

Can an employer change its payroll schedule?

An employer may be able to change its schedule, but it must comply with employment contracts, wage-payment laws and notice requirements. The company should explain the transition clearly and avoid creating an excessively long gap between employee paydays.