Depending on your personal preferences, your lifestyle, and how you manage your budget, you might prefer a certain pay period over another. Each pay period comes with unique pros and cons to consider.
Daily
A daily pay period means you get paid every day, which is about 260 business days per year.
Around 50% of Gen Z workers believe they would benefit from getting paid more frequently than they currently do.² However, employers might find that a daily pay schedule increases administrative costs associated with processing payments.
Several side hustles and gig-economy jobs, like driving for Uber Eats or walking dogs, offer the opportunity to receive a daily paycheck.
Pros
- Increased flexibility for employees
- Reduces the need for short-term borrowing
Cons
- Challenging for employees to save
- Higher administrative costs for the employer
Weekly
Employees who get paid weekly can expect 52 paychecks per year. Approximately 27% of workers have a weekly pay period, according to the U.S. Bureau of Labor Statistics.¹ Jobs in areas such as construction and mining tend to have higher rates of weekly pay periods.
While weekly pay can provide employees more flexibility and financial control, employers might find it increases their processing time and potentially deposit fees.
Pros
- Increased flexibility for employees
- More financial control
Cons
- Increased processing time for employer
- More fees associated with processing deposits
Bi-Weekly
A bi-weekly pay period results in approximately 26 paychecks per year. This is the most common pay period used by employers in the U.S.
Employers might gravitate to this schedule because it is more cost-effective than a daily or weekly pay schedule, and the turnaround isn’t as fast.
Employees are likely used to this pay schedule since it is so common, but they might prefer the flexibility of a daily or weekly paycheck.
Pros
- Both employers and employees are familiar with this schedule
- Fewer administrative fees compared to daily or weekly
Cons
- Many employees prefer a more frequent pay schedule
- Not ideal for hourly employees
Monthly
A monthly pay schedule results in 12 pay days per year. It is the least common option in the U.S., and for good reason.¹
A monthly pay schedule can make it difficult for employees to budget. However, employers might like a monthly schedule because it’s a more time- and cost-effective option.
Pros
- Time and cost-effective for employers
Cons
- Difficult for employees to budget
- Not ideal for hourly employees
Semimonthly
With a semimonthly pay schedule, you get paid twice per month, resulting in 24 paychecks per year. This is slightly less than the bi-weekly pay period, as there are some months with three pay periods.
Similar to a bi-weekly schedule, employers might like a semimonthly schedule because it can reduce administrative time and fees compared to a daily or weekly schedule. However, employees might prefer a more frequent paycheck.
Pros
- Fewer administrative fees compared to daily or weekly
- Employee paychecks are larger than with a bi-weekly schedule
Cons
- Many employees prefer a more frequent pay schedule
- Not ideal for hourly employees
Quarterly
You receive a paycheck every three months with a quarterly pay period, resulting in four pay periods per year.
Employers might prefer a quarterly schedule as it can reduce the time and money spent on payroll. However, employers might find it challenging to recruit employees who are open to receiving a paycheck quarterly.
While a quarterly pay period is not common, self-employed individuals or company executives might use a quarterly structure. These are typically high-earners who don’t need a regular paycheck to get by.
Pros
- Time and cost savings for employers
Cons
- Limited cash flow for employees
- Difficult for employers to recruit
