Bi-Monthly Pay for Hourly Workers

by Julie
(Oregon)

If a person is paid hourly, is it normal for an employer to pay them on set dates: every 7th and 22nd? It seems as if they would be losing 2 weeks pay a year.

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Bi-Monthly is Allowed
by: Best Business Payroll

Bi-Monthly payroll is an acceptable, and relatively common, payroll frequency. While some companies opt for weekly payroll (payable every Friday, for example) or bi-weekly payroll (payable every other Friday, for example), your company has obviously made the decision to pay twice a month on the set dates of the 7th and 22nd.

Although some employees prefer to be paid weekly or bi-weekly for easier budgeting purposes, you are not losing two weeks of pay. Your company is paying you for the number of hours worked in a set pay period.

For example, if you work 8 hours a day 5 days a week Monday through Friday, you will receive 80 hours worth of pay for the work done between the 7th and the 22nd (since there are 14 days between these two dates).

However, say you work 5 days a week M-F in between the Sunday, the 22nd of April, 2012 and the Monday, the 7th of May, 2012. Since there are 17 days in this pay period, you should be paid for the extra time in this pay period which you have worked. In this case, you would be paid 40 hours for the M-F hours worked between Sunday, April 22nd and Saturday, April 28th plus the 40 hours worked from Sunday April 29th to Saturday, May 5th, PLUS one extra day worked on Monday, May 7th.

In this manner, you will gain an "extra" day or two of pay each month, which will make up for the "lost" pay.

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Overtime Added NEW
by: Micheal Allanton

Understood. Good break down. But please explain how would I ertime be calculated in this equation?? When the employer says you have 89 to 99 regular hours during a pay week

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This is very easy...Let me explain. NEW
by: Anonymous

I was paid on the 7th and 22nd of the month.
the paycheck on the 22nd is for the days we worked form the 1st to the 15th pay period.
And the paycheck for the 7th was for what we previously worked from the 16th to the end of the month.

The good thing is some months are longer than others. so... say from the 16th to the 31st that, that timeframe may have a lot of weekdays from the 16th to the 31st. which means that on payday of the 7th you will have a 12, 13, or 14 day paycheck, Because all those hrs fell within that 16th to 31st date timeframe.

I love that kind of pay because if i was to get paid every other friday, I would only always have an 80hr check.
Where as when you get paid paid on the 7th and 22nd, your likely to see a 96 hr check.
Its cool this way.

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I suppose NEW
by: Anonymous

Getting paid on the 7th and 22nd sucks if your rent is due on the 1st of each month...

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