GLOSSARY / Biweekly Pay

Biweekly Pay

Read Time: 6 Mins

What is Bi-Weekly Pay?

Biweekly pay refers to a salary schedule where employees are paid once every two weeks, usually on the same weekday, such as every other Friday. This means there are 26 pay periods in a year.

For instance, if your company processes salaries on Fridays, you’ll receive your first paycheck on January 10, and the next on January 24.

In India, a few startups and IT companies are experimenting with biweekly pay to improve cash flow and employee satisfaction. If your monthly salary is ₹60,000, you’ll receive around ₹30,000 every two weeks, subject to TDS, provident fund, and ESI deductions.

Employees often prefer biweekly pay because it helps them manage expenses like EMIs, rent, and utility bills more smoothly. Employers, on the other hand, balance frequent payouts with manageable payroll processing cycles under the Payment of Wages Act, 1936.

How Does Bi-Weekly Pay Work?

Biweekly pay in India follows a fixed 14-day salary cycle. Each cycle starts and ends on the same days of the week, helping payroll teams accurately track attendance, overtime, and statutory deductions.

Once a cycle closes, HR processes the salaries by calculating gross earnings, TDS, provident fund (PF), and ESI contributions. The net salary is then transferred directly to employees’ bank accounts through NEFT, RTGS, or UPI.

When Do You Receive Salary?

Most employees receive their salary a week after the cycle ends, giving the HR and finance teams enough time to review data and process payments. For new employees, the first payment may take up to three weeks, especially if onboarding happens mid-cycle or near a public holiday.

The Three Paycheck Months

Because a year has 52 weeks, biweekly pay produces 26 salary cycles. This means twice a year, employees get three paychecks in one month. It might be a welcome bonus for budgeting or festive expenses like Diwali or Onam. Employers plan this in advance to manage cash flow smoothly.

Difference Between Bi-Weekly Pay vs Bi-Monthly Pay

While both biweekly and bimonthly pay schedules are common globally, the difference becomes important when processing payrolls. The key distinction between both lies in how often employees get paid and how those payments align with monthly financial obligations.

Here’s a comparison between biweekly and bimonthly pay to help you understand the difference:

Factor	Biweekly Pay	Bimonthly Pay
Paychecks per year	26	24
Payment frequency	Every two weeks on the same weekday	Twice a month on fixed calendar dates
Paycheck amount	Smaller, more frequent	Larger, less frequent
Consistency	Always on the same weekday	Date shift depending on weekends and holidays
Best suited for	Hourly and mixed workforces	Salaried employees with fixed monthly cycles
Overtime calculation	Easier to track	Slightly complex
Employee benefits	Processed more frequently across 26 runs	Processed across 24 runs, easier for monthly reconciliation
Payroll processing	26 runs per year	24 runs per year
Cash flow challenges	Two extra paychecks annually	Predictable alignment with monthly billing and rent cycles

In short, biweekly pay provides employees with a more regular income flow, while bimonthly pay aligns more neatly with India’s monthly expense rhythm such as rent, EMIs, and utility bills.

What are the Industries That Use Biweekly Pay?

While monthly pay remains the common norm across most Indian companies, biweekly pay is steadily gaining ground in sectors with variable hours and large workforce volumes.

Common Industries Using Biweekly Pay

IT and ITES: Companies like Infosys, Wipro, and global BPOs often adopt biweekly pay for project-based teams and international contracts that follow global payroll cycles.

Healthcare and Education: Hospitals, clinics, and private schools use this schedule to manage salaries for both permanent and hourly staff such as nurses, lab technicians, and adjunct teachers.

Hospitality and Food Services: Restaurants, hotels, and quick-service chains like Swiggy or OYO prefer biweekly payroll to handle high staff turnover and daily wage adjustments.

Manufacturing and Construction: Factories and contract-based projects often find biweekly pay useful for tracking attendance, shift hours, and equipment costs in sync with production cycles.

Startups and Gig Platforms: Many startups and gig-based platforms (like Zomato, Blinkit) use biweekly payments to retain workforce loyalty and provide faster access to earnings.

Why Industries Favor Biweekly Schedules?

Industries that employ hourly, contract, or mixed workforces find biweekly payroll simpler for overtime tracking and employee satisfaction. It allows workers to manage short-term financial needs without waiting till the month-end, while giving employers predictable control over labor costs.

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How to Calculate Biweekly Pay?

Calculating biweekly pay depends on whether employees are paid hourly or on a fixed salary. Let’s look at both methods:

Calculating Pay for Hourly Employees

To calculate biweekly pay for hourly employees, multiply the total number of hours worked during the two-week period by the hourly wage.

calculating pay for hourly employee

Formula: Hours worked x Hourly rate = Gross biweekly pay

Example:

If an employee works 80 hours in two weeks at ₹300 per hour, their gross pay will be ₹24,000 (₹300 x 8 = ₹24,000)

If the employee has overtime, calculate those hours separately, typically at 1.5 times the regular hourly rate.

Example with overtime:

If the same employee works 88 hours in two weeks (8 hours overtime), regular pay covers 80 hours (₹300 × 80 = ₹24,000), plus overtime at ₹450 per hour (₹450 × 8 = ₹3,600).

Total gross pay = ₹27,600.

Calculating Pay for Salaried Employees

For salaried employees, the annual salary is divided by 26 (since biweekly pay results in 26 pay periods per year).

Formula: Annual salary ÷ 26 = Gross biweekly pay

Example:

An employee earning ₹7,80,000 annually will receive ₹30,000 every two weeks (₹7,80,000 ÷ 26 = ₹30,000).

Similarly, an annual salary of ₹13,00,000 results in a biweekly pay of ₹50,000.

After Calculating Gross Pay

Once gross pay is determined, the following statutory and voluntary deductions are applied:

Tax Deducted at Source (TDS) based on the employee’s income slab
Provident Fund (PF) contribution from both employer and employee
Employee State Insurance (ESI), if applicable
Professional Tax, depending on the employee’s work location
Health insurance premiums (if employer-sponsored)
Voluntary deductions, such as loans or salary advances

Simplify Biweekly Payroll Automation with Keka

While calculating biweekly pay manually is possible, it becomes challenging when managing multiple employees, varying shifts, or changing tax rules. That’s where Keka’s payroll software helps.

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