Payday

The calendar day wages are deposited.

Definition

Payday is the calendar day on which wages from a completed pay period are deposited into the employee's bank account or distributed via paycheck or pay card. Most U.S. employers schedule payday for a Friday so funds clear before the weekend; semimonthly employers typically use the 15th and last business day of each month. State law sets the minimum frequency (most require at least semimonthly for non-exempt employees), but the specific weekday or date is at the employer's discretion. When payday falls on a weekend or federal holiday, employers usually advance the deposit to the prior business day.

Example

A biweekly Friday payday means the employee receives wages every other Friday.

Related terms

• Pay period — The recurring window of time covered by a single paycheck.
• Pay frequency — How often paychecks are issued.
• 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