My new job pays on the 15th and 30th of every month. IF those days fall on a weekend we get paid on the friday before. My math is terrible but this feels like I come out with LESS paychecks per year?
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If they pay you for all hours you have worked since the previous paycheck, it doesn’t matter how often they pay you per month. You will be paid for the same number of hours. I am paid once a month. If they paid me twice a month, I would still be paid for the hours I worked, but in two chunks per month instead of one.
(Of course, if your money spends more time collecting interest in their bank account and less time collecting interest in your bank account, you are making a little less interest, but it isn’t going to amount to anything unless you make a lot more money than I suspect you make.)
> My math is terrible but this feels like I come out with LESS paychecks per year?
Correct. twice a month is 24 paychecks while bi-weekly is 26. Those 24 cheques will each be slightly bigger than the 26 ones as each one covers slightly more time. You get paid the same amount regardless of how frequently you are paid.
It’s not exactly the same. In a semimonthly system you get paid exactly 24 times a year. In a biweekly system, you get paid every fourteen days which works out to 26 times a year on average.
Even if you get a different number of paychecks your final take-home pay will wind up the same, since that’s determined by either your hourly wage or your annual salary.
If you get paid 2 times per month times 12 months that is 24 times.
That’s 24 paychecks per year.
Bi weekly would be 26 pay periods. There are 52 weeks in a year, and half that is 26.
That’s 26 paychecks per year.
Most companies either pay you hourly or with a yearly salary. Either way you end up the same money regardless of whether you get 24 slightly larger checks or 26 slightly smaller ones. Because it all adds up to the same amount of hours or salary.
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