Getting paid on the 15th and 30th refers to paying twice a month. It would mean that salary to the employees occurs twice a month. Pay dates should be 15 days while doing systematically.
However, it is not necessary to make it so. The payments may occur on the 15th and 30th of the month. This can be referred to as a fortnightly payment or semi-monthly payment system.
Employers provide compensation to employees for their services rendered in the form of bonuses, salary, commission. Wages. Such compensation is provided either daily, monthly, weekly, fortnightly.
The HR of a company is entrusted with the management of the payroll of employees. The frequency of payment to employees is decided considering the benefit of both business and its employees.
The features of getting paid on the 15th and 30th payroll mechanism can be explained below:
- A number of paychecks: These payroll cycles typically occur on a semi-monthly basis or technically on a fortnight basis. In rarer times, inconsistencies within the calendar can create two months in a year where it would seem employees received more than two payments in the same month. But this is just that the nature of calendar months would create such confusion, which in reality is not.
- Paycheck amounts: There are 365 days in a month. That would be equivalent to 24 paychecks in a year or, if 5 days are accounted for separately, 25 paychecks in a year.
- Consistency of payday: Employees who get paid on a 2-month payroll schedule shall receive paychecks on a specific day of the month and not on a specific day of the week. Employees paid on a semi-monthly payroll schedule are usually paid on the 15th and the last day of the month. The date of payment should remain consistent, but the day may be different for each pay. For example; The employer has chosen the date of payment as 15th and 30th of each month. That would mean that each payment shall be made on 15th and 30th regardless of Fridays in one month and Monday in another month. If it happens to be a holiday, the payment shall be made the day before and early.
Comparison among semi-monthly, weekly and monthly payments:
|Basis of Comparison||Weekly payroll||Getting paid on 15th and 30th (Fortnight basis)||Monthly Payroll|
|Number of Paychecks||There are more or less 4 checks in a month and 52 payment checks in a year||2 payment checks are issued in a month, or 24 payment checks are made in a year||12 payment checks are issued in a year.|
|Paycheck amounts||The amounts to be paid are less.||The payments to be made are higher than weekly payroll employees but lesser than those on monthly payroll.||The amount to be paid to employees on monthly payroll are higher.|
|Consistency of payday||The day is consistent like each week pay is to be made on Fridays.||The date is consistent, like each payment is to be done on the 15th and 30th of each month.||Generally, payments are made at the end of each month.|
|Compliance||Regulatory compliances are very less. Only minimum wage laws need to be adhered to.||With each scenario, other labor laws may need to be adhered to.||Complete set of labor laws and policies needs to be complied with.|
|Suitability||This payment is suitable for all the daily workers’ based such system.||These payroll systems are used in the construction industry with temporary workers.||These sorts of payroll mechanism are used generally for professional and permanent employees.|
A semi-monthly payroll mechanism comes in handy to accountants to make month-end compliance with all the related labor laws and tax-related aspects applicable to the company.