Bi-weekly Pay

Bi-weekly pay refers to a payment schedule where employees receive their wages every two weeks, typically on the same day of the week. This results in 26 pay periods per year, and occasionally 27 in leap years or depending on your payroll calendar.

It’s one of the most common pay frequencies used by companies, especially in the United States and parts of Europe, as it strikes a balance between employee satisfaction and payroll efficiency.

Bi-weekly payroll means employees are paid every other week, typically on a Friday. This schedule results in two months per year where employees receive three paychecks instead of two, which can be beneficial for budgeting purposes.

Here’s a basic breakdown:

Employers need to track time worked in each two-week window and calculate wages (including overtime, bonuses, or deductions) accordingly.

In a bi-weekly system, employees typically receive 26 paychecks per year. However, in some years (depending on your payroll calendar), there can be 27 pay periods.

This extra paycheck doesn’t increase the annual salary but may require employers to make payroll and benefits adjustments for accurate reporting and budgeting. You can calculate your or your employees’ salary from Native Teams’ payroll calculator.

Though often confused, bi-weekly and semi-monthly pay schedules are different.

For teams managing international payroll, understanding this distinction helps ensure accurate and compliant payment processes.

For employers

• Predictable workflow: Payroll processing becomes routine and manageable.
• Employee satisfaction: Regular, frequent paydays increase satisfaction and trust.
• Streamlined time tracking: Syncs well with weekly schedules and timesheets.

For employees

• More frequent cash flow: Helps with regular expenses and budgeting.
• Two “extra” paychecks in some months, providing financial flexibility.
• Easier planning: Aligns with bi-weekly rent, bills, or loan payments.

“Bi‑weekly payroll provides employees with a predictable and consistent income, aiding in financial planning and budgeting.” –Paul Devlin, Senior Editor at APlus Payroll

For employers

• Increased payroll runs: More administrative effort than monthly or semi-monthly.
• Benefit calculations: Deductions must be adjusted across 26 or 27 pay periods.

For employees

• Payday inconsistencies: Dates shift each month, unlike fixed semi-monthly pay.
• Smaller paychecks: Each payment may feel smaller compared to monthly schedules.

Bi-weekly payroll is commonly used in:

• Retail and service industries
• Healthcare
• Education and government sectors
• Remote and globally distributed teams

It's especially useful in countries where weekly work hours are standardised and employee benefits are prorated over multiple pay periods.

Each bi-weekly paycheck includes standard tax withholdings (income tax, social security, health insurance, etc.). Because there are more pay periods, tax deductions are spread more evenly across the year.

However, the presence of 27 pay periods in some years can affect annual benefit contributions or caps. Employers should clearly communicate such occurrences and adjust their systems accordingly. 

Read our payroll management guide → Managing Global Payroll: A Quick Guide for Remote Teams

To implement a bi-weekly pay schedule, employers should:

1. Choose a consistent payday (e.g. every other Friday).
2. Set up a payroll calendar covering all 26 (or 27) pay periods.
3. Adjust benefits, taxes, and deductions across the pay periods.
4. Use payroll software or a service provider like Native Teams to manage compliance and automation.
   
   Explore how we help with global payroll solutions → Global Payroll Services - Employment for International Teams

Let’s say an employee earns $52,000 per year on a bi-weekly schedule.

This amount is then taxed, and deductions (e.g. health insurance, pension) are applied accordingly.

• Bi-weekly pay means employees are paid every two weeks, 26 times per year.
• It’s widely used due to its balance between employee needs and employer processes.
• It differs from semi-monthly pay in timing and complexity.
• Employers should account for 27 pay periods in certain years.
• Native Teams helps global companies streamline bi-weekly payroll with ease.