What is bi-weekly payroll

Bi-weekly payroll is a pay schedule where employees receive pay every other week, typically on the same weekday, such as every other Friday.

The bi-weekly pay schedule produces 26 paychecks per year (and 27 in some calendar years). Below, we explain how bi-weekly payroll works, outline advantages and challenges, provide worked examples, and share a step-by-step checklist to help your company transition smoothly.

Bi-weekly vs semi-monthly payroll (side-by-side comparison)

While bi-weekly and semi-monthly pay are often confused, they operate differently:

See also: Biweekly vs Monthly Pay: Country-by-Country Comparison Guide

How paycheck amounts differ (example)

• Annual salary: $52,000
• Bi-weekly: $52,000 ÷ 26 = $2,000 gross
• Semi-monthly: $52,000 ÷ 24 = $2,166.67 gross

Overtime and hourly work alignment

Under a biweekly pay period, overtime is still based on the 40-hour workweek, but the

Advantages of bi-weekly payroll

More predictable employee experience

Employees appreciate the consistent cadence, which supports budgeting and increases predictability. For many teams, receiving a paycheck every other week feels more aligned with weekly expenses.

Easier overtime calculation for hourly staff

Because bi-weekly schedules pair cleanly with weekly overtime rules, hourly employees and payroll teams benefit from simplified calculations and fewer discrepancies.

Morale boost with more frequent paychecks

Twice a year, employees receive three paychecks in a month, which can feel like an extra bonus even though total annual compensation remains unchanged.

Potentially fewer payroll errors

A fixed, repetitive payroll cycle helps reduce administrative mistakes, especially when paired with automated payroll software.

Disadvantages and payroll admin considerations

Smaller paychecks

Employees may initially feel they are earning less because each paycheck covers a shorter period, even though annual compensation remains the same.

Cash-flow impact and months with three paychecks

Finance teams must prepare for two months with three payroll runs, which can affect cash-flow planning.

Vendor pricing per run

Some payroll providers charge per payroll run. A bi-weekly schedule results in more runs than a semi-monthly cycle, potentially raising costs unless your provider offers unlimited payroll runs.

See also: 4 Payroll Schedule Types and How to Choose One

Legal considerations: Pay frequency rules vary by country and state

Bi-weekly payroll is common in the US and Canada, but it’s not always a legally compliant or culturally expected pay frequency in other regions. Many jurisdictions regulate how often employees must be paid, and employers must follow those rules regardless of internal preference.

Pay frequency laws (examples)

• United States: Pay frequency rules vary by state (e.g., some require weekly or bi-weekly pay for hourly workers)
• Canada: Provincial labor standards define minimum pay frequency when running payroll in Canada
• Europe and LATAM: Monthly or semi-monthly pay is standard; in some countries, bi-weekly payroll may not be permitted or common
• Asia-Pacific: Many markets mandate monthly pay; some require specific paydays (e.g., within seven days of month-end)

Local expectations also matter

Even where bi-weekly pay is legally allowed, it may be unusual (leading to employee confusion), not aligned with cultural norms, or incompatible with local benefit cycles, such as mandatory contributions.

Global compliance rule of thumb

Always check the worker’s local labor laws and practical norms before choosing a pay frequency.

If you employ internationally, ensure your payroll schedule complies with:

• Local labor codes
• Payday timing restrictions
• Required contribution cycles
• Cultural expectations around monthly or semi-monthly pay

How to implement bi-weekly payroll (6-step checklist)

Switching to bi-weekly payroll is straightforward with a structured plan. Use this checklist to guide your transition:

1. Choose a consistent payday and cut-off rule

For example: payday every other Friday, with a timesheet cut-off the prior Monday at 11:59 PM.

2. Build a 26-period payroll calendar

Include the two months that will have three paychecks. Share the payroll calendar with HR, payroll, and finance teams.

3. Review vendor pricing and update system settings

Confirm whether your payroll provider charges per run or offers unlimited payroll cycles.

4. Map benefits and deductions to the new schedule

Adjust proration logic for benefits, wage garnishments, and retirement contributions to avoid miscalculations.

5. Run a pilot or parallel payroll

Testing one cycle helps identify discrepancies early, especially for hourly workers or commissions.

6. Communicate changes and provide sample pay stubs

Notify employees at least 30 days in advance. Provide examples that show how paycheck amounts will differ from the current schedule.

Need support? See how Deel Payroll automates bi-weekly runs, calculations, and multi-state compliance.

How to determine biweekly pay

To calculate bi-weekly pay, divide the annual salary by 26. For hourly workers, compute overtime based on weekly hours even when pay is issued every two weeks.

• Annual salary: $52,000
• Bi-weekly gross pay: $52,000 ÷ 26 = $2,000
• Net pay varies based on taxes, benefits, and other deductions.

Overtime example (hourly employee)

• Hourly rate: $20/hour
• Week 1: 45 hours (5 overtime hours)
• Week 2: 40 hours
• Regular pay: 85 hours × $20 = $1,700
• Overtime pay: 5 hours × $30 = $150
• Total for pay period: $1,850

Weekly overtime remains separate even when paid bi-weekly, which helps maintain compliance.

Handling holidays, deductions, and special cases

If payday falls on a weekend or holiday

Most employers move payday to the previous business day, but state-specific payday laws may apply.

Third paycheck months

Update deduction schedules so benefits are applied correctly. Many employers omit certain deductions on the third paycheck (e.g., monthly benefits), but policies vary.

Should your company use bi-weekly payroll?

Bi-weekly payroll works well for many organizations, especially those with hourly teams or predictable schedules.

Bi-weekly payroll is a good fit when:

• You employ a high number of hourly workers
• Your payroll provider offers unlimited runs
• Weekly overtime compliance is a priority
• Employees prefer more frequent paychecks

Consider alternatives (like semi-monthly or monthly) when:

• Finance teams need predictable monthly deduction timing
• Your provider charges per payroll run
• You operate with complex commission or bonus structures

Frequently asked questions (FAQ)

Is bi-weekly payroll the same as semi-monthly?

No. Bi-weekly pays every other week (26 paychecks/year), while semi-monthly pays twice per month (24 paychecks/year). Paycheck size and overtime alignment differ.

How do I determine a bi-weekly salary paycheck?

Divide annual salary by 26. Example: $52,000 ÷ 26 = $2,000 gross.

How is overtime calculated under bi-weekly payroll?

Overtime is still calculated weekly, not bi-weekly. Only hours above 40 in a workweek count as overtime.

What if payday falls on a holiday or weekend?

Most employers pay on the preceding business day, but follow applicable local regulations.

How do I switch from semi-monthly or monthly to bi-weekly?

Follow a structured plan: select a payday, build a payroll calendar, update deductions, run a pilot, and communicate clearly to employees.

Bi-weekly payroll periods: Key facts

• 26 bi-weekly pay periods per year (27 in certain calendar alignments)
• Employees receive two paychecks per month during most months and three paychecks in two months of the year
• Paydays remain on the same weekday, which simplifies time tracking and overtime calculations
• Administrators should consider vendor pricing, holiday handling, and benefit deduction proration when selecting a pay frequency