It is called bimonthly pay or semimonthly pay when you get paid twice a month.
Understanding Bimonthly and Semimonthly Pay
When an employee receives their paycheck two times within a calendar month, their pay schedule is typically referred to as bimonthly or semimonthly. Both terms accurately describe this frequency, leading to 24 pay periods over the course of a year. This arrangement often means payments are made on specific, fixed dates of the month, such as the 15th and the last day of the month, regardless of the day of the week these dates fall on.
How Bimonthly/Semimonthly Pay Works
A bimonthly or semimonthly pay schedule is a common choice for many employers due to its predictability and alignment with calendar months.
- Fixed Dates: Paydays are usually on pre-determined dates, for example, the 1st and the 15th, or the 15th and the 30th/31st of each month.
- Consistency: Employees receive two paychecks consistently every month, which can simplify personal budgeting.
- Annual Pay Periods: This schedule results in precisely 24 paychecks per year, as there are 12 months in a year and two paychecks per month (12 months * 2 paychecks/month = 24 paychecks/year).
Bimonthly vs. Biweekly: A Common Distinction
It's crucial to distinguish between bimonthly/semimonthly and biweekly pay, as these terms are often confused but represent different payment frequencies:
| Pay Frequency | Description | Pay Periods Per Year |
|---|---|---|
| Bimonthly | Paid twice a month (e.g., 15th and last day) | 24 |
| Semimonthly | Paid twice a month (e.g., 15th and last day) | 24 |
| Biweekly | Paid every two weeks | 26 |
| Weekly | Paid every week | 52 |
| Monthly | Paid once a month | 12 |
While bimonthly/semimonthly pay results in 24 paychecks annually, a biweekly schedule means an employee is paid every two weeks. This leads to 26 paychecks per year, with two months out of the year having three paychecks. Understanding this distinction is vital for both employees managing their finances and employers setting up payroll systems. For more on pay schedules, you can learn about various pay frequencies here.
Practical Insights for Employees
For employees, understanding their pay frequency is key to effective financial planning.
- Budgeting: Knowing you receive two paychecks each month can simplify budgeting, as income is consistent from month to month.
- Bill Payments: Aligning bill due dates with paydays can help avoid late fees and manage cash flow efficiently.
- Consistency: The predictable nature of bimonthly pay allows for easier long-term financial planning compared to schedules with varying numbers of paychecks per month.
