Payment Frequency

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Definition

Payment Frequency is a determination of how often employees are paid. Most often employees are paid weekly, bi-weekly, semi-monthly or monthly.

The industry that you are in may dictate the frequency of your payments. For example, construction workers most often get paid weekly where the government or medical staff are paid bi-weekly. 

The number of employees in a company may also impact which payment frequency is used. For example, a company with employees numbering over 1000 tends to use the bi-weekly payment frequency but companies with less than 1000 employees tend to use weekly payment frequency.

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LAYMEN TERMS

Depending on the industry you are in will determine the payment frequency you will be paid. 

Weekly - if you are paid weekly then there will be 52 payments that you will receive. 

Bi-Weekly - you will get paid every two weeks and will receive 26 payments.

Semi-Monthly - you will receive your payment twice a month which will be 24 payments.

Monthly - you will be paid only once a month for 12 payments.

HOW DOES THIS TERM APPLY TO YOU

If you start a new job making $10,000 a year you will receive your paychecks in one of the payment frequencies explained (either weekly, bi-weekly, semi-monthly, monthly). It doesn’t matter the frequency in which you are paid, you will still receive $10,000 for the year. 

For example, you will receive the following payments on your paychecks depending on the payment frequency of your job:

Weekly (once payment every week)- $192.31

Bi-Weekly (once payment every two weeks) - $384.62

Semi-Monthly (one payment twice a month) - $416.66

Monthly (one payment a month) - $833.33

In other words, regardless of how often you are paid, it will still amount to your final salary total.

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