Biweekly Paycheck vs Semimonthly Pay: What’s the Difference?

The Schedule Confusion

• Biweekly: Paid every two weeks (e.g., every other Friday).
  • Total Checks: 26 per year.
• Semimonthly: Paid twice a month (e.g., 1st and 15th).
  • Total Checks: 24 per year.

The Paycheck Size

Let's assume a salary of $60,000.

Semimonthly: $60,000 / 24 = $2,500 per check. Your checks are bigger. You get exactly two every month. Budgeting is predictable.

Biweekly: $60,000 / 26 = $2,307 per check. Your checks are smaller. However...

The "Magic" Months

On a biweekly schedule, since there are 52 weeks, you get 26 checks. 12 months x 2 checks = 24 checks. Where do the other 2 go?

In two months of the year, you will receive 3 paychecks.

Budgeting Strategy

If you budget based on receiving 2 checks a month ($4,614 income), those two "extra" checks ($2,307 each) are pure bonus money.

• Use check #3 to max out an IRA.
• Use check #3 to pay off a car loan.
• Use check #3 for a vacation.

Which is Better?

• Employers prefer semimonthly (less paperwork, aligns with monthly accounting).
• Employees often prefer biweekly (more frequent cash flow, bonus months).

Summary

Knowing your schedule is key to cash flow management. If you are biweekly, identify your 3-paycheck months now and give that money a job before you spend it.

See how frequency changes your check size with our Paycheck Calculator.