HR Glossary / Biweekly Pay

Biweekly pay, or biweekly payment, refers to the pay cycle of a company where the employees are paid every other week, on the same day.


How Does a Biweekly Pay Work?

With a biweekly pay, employees are paid every two weeks, resulting in a total of 26 paychecks throughout the year. This is the most common type of pay period.

The salary for an employee compensated on an annual basis would be divided into 26 paychecks. For employees paid on an hourly basis, the pay will be based on the number of hours worked during the two-week pay period.

Biweekly pay allows employees to budget their finances more easily because they receive their paychecks on a regular schedule.

What Are the Benefits of Biweekly Pay Cycles?

Biweekly pay cycles have benefits for both employees and employers.

Biweekly pay cycles help employees better budget their finances because they can expect to be paid steadily on the same day every other week.

Biweekly pay cycles help employers save time and reduce the chance of errors. This payment strategy also simplifies overtime pay calculations. Biweekly pay may also be less expensive for organizations who rely on external payroll management services where payments are billed on a per-payroll basis over a weekly pay cycle.

How to Calculate the Biweekly Pay?

To calculate the biweekly pay for an hourly worker, the number of hours worked during the two-week period is multiplied by the hourly rate of the worker. For example, an employee who worked 75 hours at a rate of 19 dollars an hour would receive a gross biweekly pay of $1425.

To calculate the biweekly pay for a salaried employee, the amount of the fixed salary is divided by 26 (corresponding to the number of paychecks that the employee would receive). For example, a salaried employee earning $50 000 a year would receive a gross biweekly pay of $1923.08.

How Many Biweekly Pay Periods Are There in a Year?

There are 26 separate pay cycles in any given year for employees who are paid on a biweekly basis. As such, these employees can expect to be paid twice a month, except for the two months where they will receive three payments.

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