A payment schedule based on two fixed paydays per month, often the 15th and the last day, provides employees with predictable income. For example, a worker paid semi-monthly receives 24 paychecks annually, unlike those paid bi-weekly (every two weeks) who receive 26. Variations exist, such as payment on the 1st and 16th, and adjustments are made when these dates fall on weekends or holidays.
Consistent and predictable paydays facilitate budgeting and financial planning for individuals and households. This structured approach also simplifies accounting processes for businesses. Historically, semi-monthly pay cycles arose alongside regular employment practices, offering a compromise between less frequent monthly payments and more frequent weekly wages. This regularity provides stability and allows individuals to better manage recurring expenses like mortgages or rent.
