1. What is Semi-Monthly Pay?

Semi-monthly pay means employees are paid twice each month, typically on the 15th and last day of the month. This differs from biweekly pay (every two weeks) which results in 26 pay periods per year versus 24 for semi-monthly.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( hourly \) — Hourly wage rate in dollars
• \( 86.67 \) — Standard hours in a semi-monthly period (2080 annual hours ÷ 24 pay periods)

Explanation: This calculation converts an hourly wage to the equivalent semi-monthly salary amount.

3. Why Calculate Semi-Monthly Pay?

Details: Understanding semi-monthly pay helps with budgeting and comparing compensation packages between jobs that pay hourly versus salaried positions.

4. Using the Calculator

Tips: Enter your hourly wage rate in dollars. The calculator will show your estimated gross pay per semi-monthly pay period.

5. Frequently Asked Questions (FAQ)

Q1: How many pay periods are there in semi-monthly pay?
A: There are 24 pay periods per year (12 months × 2 pay periods per month).

Q2: Is semi-monthly the same as biweekly?
A: No, biweekly means every two weeks (26 pay periods/year), while semi-monthly means twice per month (24 pay periods/year).

Q3: Why 86.67 hours?
A: This is based on 2080 work hours per year (40 hours/week × 52 weeks) divided by 24 pay periods.

Q4: Does this include overtime?
A: No, this calculates base pay only. Overtime would need to be calculated separately.

Q5: Are deductions included in this calculation?
A: No, this shows gross pay before any deductions like taxes or benefits.