Semi monthly pay is a schedule of regular payments, twice a month, on specified days. Typically on the 1st and 15th of the month. You would get paid 2 times per month for work or services performed. Since there are 12 months in a year, that would make 24 semi-monthly pay periods.
According to US Bureau of Labor Statistics, the semi-monthly pay period is the third most common pay period in the US behind weekly and bi-weekly pay periods respectively.
Table of Contents
Number of Semi-Monthly Pay Period in a Year
| Pay Period | Number of Pay Period in a Year |
| Daily | 365 |
| Weekly | 52 |
| Bi-Weekly | 26 |
| Semi-Monthly | 24 |
| Monthly | 12 |
| Quarterly | 4 |
| Semi-Annually | 2 |
| Annually | 1 |
Semi-Monthly Pay Schedule
There are several common dates employers use when on a semi monthly pay schedule.
Common semi monthly dates include:
- 1st and 15th
- 1st and 16th
- 15th and 31st (Last Day of the Month)
- 16th and 31st (Last Day of the Month)
That means their pay schedule would look similar to the following:
Semi Monthly 1st and 15th
| Pay Date | Pay Schedule |
| May 1st | April 16th – 31st (Last Day of the Month) |
| May 15th | May 1st – 15th |
Semi Monthly 1st and 16th
| Pay Date | Pay Schedule |
| May 1st | April 16th – 31st (Last Day of the Month) |
| May 16th | May 1st – 15th |
Semi Monthly 15th and 31st (Last Day of the Month)
| Pay Date | Pay Schedule |
| May 15th | May 1st – 15th |
| May 31st (Last Day of the Month) | May 16th – 31st (Last Day of the Month) |
Semi Monthly 16th and Last Day of the Month
| Pay Date | Pay Schedule |
| May 16th | May 1st – 15th |
| May 31st (Last Day of the Month) | May 16th – 31st (Last Day of the Month) |
Pros of Semi Monthly Pay Periods
1. Semi Monthly Pay Period Saves Companies Money
Semi Monthly Pay Periods save companies money. Compared with a Weekly pay schedule, there is a significant reduction in administrative and payroll costs since there are fewer pay periods.
There are 52 pay periods in a weekly pay scheduled compared to 24 pay periods in a semimonthly pay cycle. This reduces the number of paychecks paid to the employees annually.
2. Increases Productivity
Semi Monthly Pay Periods increases productivity. Regular large paychecks given to employees may increase their productivity compared to employees receiving a smaller weekly wage.
3. Better Match with Business Cycle.
Semi Monthly Pay Periods are better matched with business cycles. Employees are paid at around the same time businesses make money, making it easier to pay employees on time.
4. Fixed Payday for Employee
With Semi Monthly Pay schedule, employees are guaranteed their payday at the same time on the same date every twice a month, giving them a fixed payday number. This takes some of the guesswork out of budgeting and makes it easier to understand. Which is especially useful for employees looking to use their pay stubs as proof of income. Since the semi monthly pay periods have fixed dates everyone can understand
5. Reduce Waiting Period
With the semi monthly pay schedule, employees are paid between the 1st and the 15ths. Instead of waiting on a month to get paid, with a semi monthly payday, the employees’ paydays occur twice a month.
6. Simple to calculate
Semi Monthly Pay Periods are simple for employers and employees to calculate. Semi Monthly is on a fixed schedule. The Schedule simplifies payroll by solving two of the most complex payroll problems: Tracking of accumulation of unpaid earnings and irregular dates.
Cons of Semi-Monthly Pay Periods:
1. Harder to budget with semimonthly pay cycle
Semi Monthly Pay Periods are harder for employees to budget with. For many employees paid every weekly, their budget is based upon a predictable paycheck every weeks.
Whereas an employee on a semi monthly pay schedule will have to wait approximately every two weeks for a pay check. This can leave employees with a hard time analyzing their pay stubs and account balance.
2. Possible to Accidentally Overestimate Semi Monthly Pay Cycles
Semi Monthly Pay Periods can cause employees to accidentally overestimate their pay. For some employees, they assume the semi monthly pay schedule includes the pay from the date they are getting paid. This can lead to employees budgeting with the wrong amount of money anticipated on their check.
3. Semi Monthly Pay Periods May be Challenging for Managers
Semi Monthly Pay Periods may be challenging for managers to understand. Managers who are not experienced in a semi monthly pay cycle may have a difficult time managing their budget.
Frequently Asked Questions about Semi Monthly Pay
What does semi monthly mean?
Semi monthly means twice a month.
What is semi monthly?
Semi monthly is a twice a month schedule of regular payments, such as salary.
What is semi monthly pay?
Semi monthly pay is twice a month payment.
What is semi monthly mean?
Semi-monthly means paid twice in every month (usually at the end of the month).
How to calculate semi monthly pay?
Semi monthly pay is twice a month. On fixed salary, calculate half of 1 month’s salary. For example, if you make $3,000 per month, you would get paid $1,500 semi monthly or twice a month.
What does semi monthly pay mean?
A schedule of regular payments, twice a month, usually on the 1st and 15th of the month.
How often is semi monthly?
It is twice a month, paid on different days of the month.
What is semi-monthly?
Semi monthly is a twice a month.
How many pay periods in semi monthly?
Semi-monthly has two payments per month, i.e., paid twice a month on different days of the month with no interim pay periods included between them. For example, On the 1st and 15th of every month you will get your salary or your income tax return, so it is called semimonthly schedule.
What is semimonthly pay?
It means twice a month. An income tax paid semimonthly means it is paid twice a month, usually on the 1st and 15th of every month.
What is semi monthly pay mean?
Twice a month (bi-monthly) and can be sued to refer to any job that pays twice a month, such as monthly salary jobs or monthly wages jobs or bi-weekly salaried employment or any other type of income which you get two times in every calendar/month end.
What does semi-monthly mean?
Semi monthly means twice a month. Typically, like 1st and 15th of every month.
How many paychecks in a year semi monthly?
There are 24 pay Semi monthly pay periods per year.
What does semi-monthly mean?
Semi-monthly means twice a month.
What is a semi monthly pay schedule?
A semi-monthly payment schedule has 2 payments per monthly cycle, so typically paid on 1st and 15th of every month.
Final Thoughts
It is vital that organizations read up and extensively do their homework before adopting a semi-monthly paycheck schedule for their organization.
Semi monthly pay periods may not be right for every company. Although, semi monthly pay period is one of the most common pay schedules. Semi-monthly pay periods are best suited for organizations with more than 20 employees.
Only businesses with more than 20 employees will be able to share the extra cost of implementing a semi-monthly system. In a small business, semi monthly pay periods can be unnecessary and time consuming.
In some cases, semi monthly pay periods may not be right for all employees. For example, an employee who is paid at the end of the pay period may find it difficult to have to wait up before getting paid.
The average income and size of the company has a huge impact on any decision to be made. To make a decision on which pay schedule will work for an organization, it is also essential to account for the compensation practices and personal preferences of all employees.
This way policies can be formulated to make the semi monthly pay schedules work for all employees, including those who prefer the traditional weekly payment schedule.
In conclusion, the semi monthly pay period is better than most. It is a perfect middle ground between the weekly pay period and the monthly pay period. It allowed you to get paid much faster than a monthly but larger than weekly pay schedule.