Two of the most common pay schedules are semi-monthly and biweekly. These terms are often mixed up, but here’s one important distinciton to keep in mind: they’re not interchangeable. They both actually have different meanings.
Understanding the key differences between semi-monthly vs. biweekly pay is crucial for effective payroll management. You can both avoid misunderstandings and build trust with your new hires — it’s a win-win.
As you get your payroll up and running, let’s look at the core differences between semi-monthly and biweekly pay. Each schedule has its own structure and leads to a different number of paydays each year.
Table of Contents
What is semi-monthly pay?
Semi-monthly pay means employees receive wages twice a month. The most common payment dates are the 15th and the last day of each month. This schedule results in 24 pay periods per year, with two paycheques each month.
Semi-monthly paydays can fall on different days of the week, depending on the month and year. The time between paydays ranges from 13 to 16 days. For salaried employees, the amount paid each period stays the same because the annual salary is divided equally by 24.
What is biweekly pay?
Biweekly pay means employees receive wages every two weeks. This schedule pays on the same weekday each cycle, such as every other Friday.
A biweekly pay schedule results in 26 pay periods in most years. The calendar dates for payday change each month, but the day of the week stays the same.
Biweekly is not the same as bi-monthly. Biweekly means a paycheque comes once every two weeks, while bi-monthly means a paycheque comes twice per month on set dates.
Key differences between semi-monthly and biweekly
The main differences between these pay schedules come down to timing, frequency, and paycheque amounts.
Number of paycheques per year: Semi-monthly provides 24 paycheques annually, while biweekly provides 26 paycheques. This means biweekly employees get two extra paycheques each year.
Payment timing: Semi-monthly uses fixed monthly dates like the 15th and 30th. Biweekly uses the same weekday every two weeks, such as every other Friday.
Paycheque size: Semi-monthly paycheques are larger because the same annual salary is divided by 24 instead of 26. Biweekly paycheques are smaller but come more frequently.
| Feature | Semi-Monthly | Biweekly |
| Annual paycheques | 24 | 26 |
| Payment dates | Fixed monthly | Every 2 weeks |
| Paycheque size | Larger | Smaller |
| Extra pay months | Never | Some months |
Quick comparison of pay dates cheques and runs
Here's how pay dates work for both schedules in a sample year. Semi-monthly pay dates are the 15th and last day of each month. Biweekly paydays are every other Friday.
| Month | Semi-Monthly Pay Dates | Biweekly Pay Dates | Three Biweekly Paydays |
| January | Jan 15, Jan 31 | Jan 10, Jan 24 | No |
| February | Feb 15, Feb 28 | Feb 7, Feb 21 | No |
| March | Mar 15, Mar 31 | Mar 7, Mar 21 | No |
| April | Apr 15, Apr 30 | Apr 4, Apr 18 | No |
| May | May 15, May 31 | May 2, May 16, May 30 | Yes |
| June | Jun 15, Jun 30 | Jun 13, Jun 27 | No |
When a pay date falls on a weekend or holiday, companies typically move the payment to the previous business day. In May and October, biweekly schedules have three paydays instead of two.
Pros and cons for employees
Larger paycheque size vs. more frequent cash flow
Semi-monthly pay creates larger individual paycheques because there are only two payments each month. Biweekly pay results in smaller amounts but payments arrive every two weeks.
Budgeting with semi-monthly pay involves planning for longer periods between paydays. Biweekly pay provides more regular cash flow since income arrives every two weeks rather than on fixed calendar dates.
Consistent weekday paydays
Biweekly pay always lands on the same day of the week. Semi-monthly pay can fall on any day of the week, depending on which date the 15th or last day of the month lands.
For employees, biweekly pay makes it easier to predict when deposits arrive. Semi-monthly pay requires attention to changing paydays, especially when planning bill payments.
Three paycheque bonus months
A biweekly pay schedule creates two months each year with three paycheques instead of two. Semi-monthly pay always provides exactly two paycheques per month.
Some employees use the extra biweekly paycheque to put money toward savings or debt payments. This doesn't happen with semi-monthly pay since the number of pay periods never changes.
Pros and cons for employers
Payroll processing workload
Biweekly payroll involves running payroll 26 times per year. Semi-monthly payroll runs 24 times per year, involving fewer pay runs and less frequent administration.
The choice between these options affects how much time payroll teams spend managing payments, especially in organizations with many employees or a mix of hourly and salaried staff.
Cash flow predictability
Semi-monthly payroll provides consistent payroll costs each month since there are always two pay periods. This makes it easier for employers to plan company cash flow.
Biweekly payroll results in some months with three pay periods, causing payroll costs in those months to be higher than usual. This variation can affect cash management and budgeting.
How pay frequency affects overtime and compliance
Overtime alignment with workweeks
A biweekly pay schedule uses a repeating 14-day cycle that often matches the standard workweek used for overtime calculations. Each biweekly pay period usually contains whole workweeks, so overtime hours can be tracked and paid within the same pay period.
A semi-monthly pay schedule uses fixed dates that don't always line up with the end of a workweek. This can split a workweek between two different pay periods, making overtime payout more complex for hourly employees.
Statutory holiday pay calculation
In Canada, statutory holiday pay varies by province, but it does not depend on pay frequency or pay date.
The pay day can be preponed or postponed to another business day because of a holiday.
If your payday is set for Good Friday, for example, the payroll input due date gets pulled to the prior business day (in this case, Thursday).
CPP EI and provincial rules
Canada Pension Plan (CPP), Employment Insurance (EI), and provincial payroll regulations respond to the number of pay periods in a year.
Different provinces have their own requirements regarding pay frequency and deductions. The amount deducted for CPP, EI, and other obligations varies per paycheque depending on the pay frequency.
Budgeting tips for each schedule
Align bill payments with paydays
For semi-monthly pay, match fixed monthly bills like rent and utilities to the paycheque that arrives closest to each bill's due date. This prevents timing gaps between income and expenses.
For biweekly pay, group bills based on which pay period they fall into. This organizes bills around when income is received.
Use extra paycheques for savings goals
Biweekly pay results in two months with three paydays instead of two. These extra paycheques don't typically have regular monthly bills attached, making them ideal for:
- Emergency fund building: Set aside the entire extra paycheque for unexpected expenses
- Debt reduction: Apply the bonus payment directly to credit cards or loans
- Savings goals: Use the extra income for vacation funds or large purchases
Automate deductions for irregular dates
Pay dates change when a scheduled payday falls on a weekend or holiday, which happens more often with semi-monthly schedules. Set automated transfers to occur the day after each payday to account for these shifts.
For biweekly pay, automated deductions can match the regular two-week cycle, keeping both savings and bill payments consistent.
How to choose or switch your pay schedule
Assess your workforce mix
The mix of employee types influences which pay schedule fits best. Salaried employees have predictable pay, while hourly employees' pay varies based on hours worked and overtime.
When a workforce includes both types, companies commonly use different pay frequencies for different groups — semi-monthly for salaried staff and biweekly for hourly workers.
Model cash flow scenarios
Each pay schedule affects monthly payroll spending differently. Semi-monthly schedules lead to two payroll runs per month, while biweekly schedules create months with two or three payroll runs.
Calculate total monthly payroll under both schedules to see the impact on cash flow, especially during months with three biweekly paydays.
Communicate change early
When changing a pay schedule, clear communication helps employees know what to expect. Announce changes several weeks before they take effect, providing a timeline, written explanation, and resources like FAQs or sample pay calendars.
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FAQs about semi-monthly and biweekly pay
Does semi-monthly or biweekly pay frequency affect total annual taxes?
The total amount of tax paid yearly depends on total income, not pay frequency. Semi-monthly and biweekly schedules don't cause higher or lower taxes over the course of the year.
Can companies use different pay frequencies for salaried versus hourly employees?
Companies can use different pay schedules for different employee types. Many organizations pay salaried employees semi-monthly and hourly employees biweekly to match overtime calculations with pay periods.
How do benefit premium deductions differ between semi-monthly and biweekly pay schedules?
Benefit deductions are divided by the number of annual pay periods. Biweekly employees have deductions spread across 26 paycheques (smaller per-paycheque amounts), while semi-monthly employees have deductions across 24 paycheques (slightly larger amounts). The total annual benefit cost remains the same.
