Bi-monthly pay refers to employees of a company receiving payment of their salary twice a month on a fixed date.
How Does Bi-Monthly Payroll Work?
The bi-monthly payroll sets salary payment cycles twice a month on pre-established dates such as the 1st and 15th day of the month. Employees receive a total of 24 pay per year with this method.
How to Calculate the Bi-Monthly Salary?
An employee’s bi-monthly salary can be calculated by dividing their annual salary by 24 paychecks.
For example, if an employee has a annual net salary of $50,000, they will receive paychecks of $2,083.33 (50,000 ÷ 24 = $2,083.33).
How many Bi-Monthly Pay Periods Are There in a Year?
Companies that pay their employees’ wages semi-monthly have 24 pay periods per year.
What Is the Difference Between Semi-Monthly Payroll and Bi-Weekly Payroll?
Bi-monthly pay means that employees receive their salary twice a month on a fixed date for a total of 24 paychecks per year.
Bi-weekly pay means that employees receive pay every 2 weeks for a total of 26 paychecks per year.