A fee schedule primarily based on two fastened paydays per 30 days, typically the fifteenth and the final day, offers workers with predictable revenue. For instance, a employee paid semi-monthly receives 24 paychecks yearly, not like these paid bi-weekly (each two weeks) who obtain 26. Variations exist, resembling fee on the first and sixteenth, and changes are made when these dates fall on weekends or holidays.
Constant and predictable paydays facilitate budgeting and monetary planning for people and households. This structured method additionally simplifies accounting processes for companies. Traditionally, semi-monthly pay cycles arose alongside common employment practices, providing a compromise between much less frequent month-to-month funds and extra frequent weekly wages. This regularity offers stability and permits people to higher handle recurring bills like mortgages or lease.
