What Does Semi Monthly Mean? With Calculation and Examples

When starting a new job, understanding how and when you will be paid is one of the first and most important things to review. After all, your pay schedule directly affects how you plan your budget, manage monthly bills, and save money.

One of the most common payroll schedules is semi-monthly, which often raises the question: what does "semi-monthly" mean? Knowing this pay period helps you anticipate not only how often you'll receive your paycheck but also the exact dates your pay will arrive.

In this guide, we explain what semi monthly means, how it differs from biweekly pay, and how to calculate what to expect in each paycheck.

What does semi monthly mean?

Semi monthly means you get paid twice a month on set calendar days, like the 1st and 15th or the 15th and the last day of the month. This pay period always gives you 24 paychecks a year because paydays are fixed dates, not every two weeks like in a biweekly pay schedule.

For example, if your payday falls on a weekend, you will typically be paid on the preceding Friday. Similarly, if payday falls on a holiday, you will receive your paycheck on the last business day before that holiday. This ensures you get paid on a regular workday without any delays.

How does semi monthly pay work?

If your employer uses a semi monthly pay schedule, you receive two paychecks each month on fixed dates, such as the 15th and last day of the month, instead of every two weeks like a bi weekly pay period.

For salaried employees, your annual salary is divided into 24 equal payments. For example, if you earn $60,000 a year, each paycheck would be $2,500 before taxes and deductions. This schedule provides steady, predictable income to help with budgeting.

For hourly workers, your paycheck varies based on the hours you work in each semimonthly period. For instance, working 80 hours at $21 per hour during one period results in a $1,680 paycheck before taxes and deductions. Since semi monthly pay periods don't always match complete workweeks, it's important to track your hours carefully to ensure accurate payment.

Semi monthly schedule can also split a workweek. If a pay period ends on the 15th but the workweek ends on the 17th, your regular and overtime hours must be divided between the two periods. This may affect how your overtime pay appears on your paycheck.

Additionally, some states like New York and California have specific laws about semi monthly payroll, so be sure to understand your state's rules to ensure you are paid accurately and on time.

Biweekly vs. semi monthly pay: Key differences you need to know

Although semi monthly and bi weekly pay schedules may seem similar, there are important differences that affect when you get paid and the amount you receive. According to the U.S. Bureau of Labor Statistics, 43% of employees are paid bi weekly, while 19.3% are paid semi monthly.

This table shows one of the most significant key differences between the two pay schedules:

Understanding the difference between semi monthly and bi weekly payroll processing helps you plan your budget, anticipate paycheck timing, and know what to expect throughout the year.

How to calculate semi monthly pay?

Now that you know what does semi monthly mean, let us look at how to calculate semi monthly pay. Here is a step-by-step guide with examples:

1. Find your gross annual salary
   Start by identifying your total salary for the year before any taxes or deductions. This amount is typically agreed upon in your employment contract and represents your full compensation from your employer for working throughout the year.
   
   Example: If your gross annual salary is $90,000, that's the number you will use.
2. Divide your annual salary by 24
   Since you receive two paychecks every month, that adds up to 24 paychecks throughout the year (12 months × 2). To find out how much you earn each pay period, divide your annual salary by 24.
   
   Example: $90,000 ÷ 24 = $3,750.
3. Understand your semimonthly paycheck amount
   The number you get after dividing is your gross semi-monthly pay, which is your paycheck amount before taxes, insurance, and other deductions. Keep in mind that the actual money you take home will be less after these subtractions, but this number is useful to know what you've earned before they apply.
   
   Example: Each paycheck will be $3,750 before any deductions.

Semi monthly formulas and examples

Now that you understand how to calculate your semi-monthly pay, here's how to break it down into daily and hourly pay based on an annual salary of $90,000:

First, calculate your semi monthly salary:

Semi-monthly salary = $90,000 ÷ 24 = $3,750

Example 1: Semi monthly pay per day

1. Start with your semi-monthly salary ($3,750).
2. Estimate the number of workdays in a semi-monthly period: about 10.83 days (based on an average of 21.67 workdays per month).
3. Divide your semi-monthly salary by 10.83.
4. The result is your approximate daily pay before deductions.

Calculation:

Semi-monthly pay per day = $3,750 ÷ 10.83 = $346.38

Example 2: Semi monthly pay hourly

1. Begin with your semi-monthly salary.
2. Find the number of work hours in a semi-monthly period:
   • A standard work year has 2,080 hours (40 hours × 52 weeks).
   • Divide 2,080 by 24 pay periods = 86.67 hours per semi-monthly period.
3. Divide your semi-monthly salary by 86.67.
4. The result is your approximate hourly rate.

Calculation:

Semi-monthly pay hourly = $3,750 ÷ 86.67 = $43.26 per hour

FAQs

Here are frequently asked questions about what semi monthly means:

If I get paid semi-monthly, how often is that?

If you get paid semi-monthly, you receive two paychecks each month on a fixed schedule. For example, hourly employees or salaried employees might be paid on the 1st and 15th or on the 15th and the last day of the month. This results in 24 paychecks over the course of the year.

Is semi-monthly every 2 weeks?

No, semi-monthly is different from every two weeks. Semi-monthly means you get paid twice each month, totaling 24 paychecks a year. In contrast, getting paid every two weeks (bi-weekly) means you receive 26 paychecks annually since months are longer than exactly four weeks.

What is $70,000 a year semi-monthly?

$70,000 a year semi-monthly is approximately $2,916.67 per paycheck, which is calculated by dividing the annual salary by 24 (the number of pay periods in a year for semi-monthly pay).