Pay frequency
How often paychecks are issued.
Definition
Pay frequency is the cadence at which an employer distributes paychecks. The four U.S. options are weekly, biweekly, semimonthly, and monthly. Weekly pay is overwhelmingly the choice for hourly retail, restaurant, warehouse, and field-service workers because it smooths out cash flow on variable hours. Biweekly is the single most common cadence in the United States and is standard for salaried employees at large industrial, healthcare, and consumer-products companies. Semimonthly is favored by banks, insurers, technology companies, utilities, and consulting firms because it aligns with monthly accounting closes. Monthly is rare in U.S. corporate payroll and usually reserved for executive compensation and certain expatriate assignments.
Example
Amazon and Walmart pay weekly. Most banks pay semimonthly. Most healthcare systems pay biweekly.
Related terms
- Pay period — The recurring window of time covered by a single paycheck.
- Payday — The calendar day wages are deposited.
- In arrears — Wages paid after the pay period ends.
- Biweekly — Every other week — 26 paychecks per year.
- Semimonthly — Twice per month on fixed dates — 24 paychecks per year.
- Gross pay — Total earnings before any deductions.
See also
- Pay schedule calculator — convert salary to per-paycheck amount
- Pay frequencies primer — weekly, biweekly, semimonthly, monthly
- Frequently asked questions