What is bi-weekly pay?

What is bi-weekly pay?

Bi-weekly pay is a payment structure in which employees are compensated every two weeks, typically on the same day of the week, such as every other Friday.

This pay schedule is popular among employers because it balances the frequency of payments with administrative efficiency, offering a regular and predictable pay cycle for both employees and payroll departments.

Note that, in some jurisdictions — including many US states — employees must be paid on a bi-weekly basis. 

There are 26 pay periods in a bi-weekly pay schedule, which typically results in two paychecks per month. However, in some months, employees may receive three paychecks.

Benefits of bi-weekly pay

A bi-weekly pay schedule provides a consistent and predictable payment cycle, making it easier for employers to manage cash flow and for employees to budget their finances.

For non-exempt employees in the US, a bi-weekly pay schedule also simplifies the process of tracking and compensating for overtime hours.

Key considerations

• Clearly communicate the bi-weekly pay schedule to employees (including how paychecks are calculated and when they will be issued).
• Ensure that deductions for benefits, retirement contributions, and taxes are accurately calculated and applied across the 26 (or 27) pay periods.
• Ensure compliance with local labor laws regarding pay frequency, minimum wage, and overtime, especially when using a bi-weekly pay schedule.