How Many Biweekly Pay Periods in a Year?

When employers use a biweekly pay schedule, employees receive compensation every two weeks. This common payment frequency often leads to questions about the exact number of pay periods within a calendar year. Understanding this standard calculation, along with occasional variations, provides clarity for both employees managing their personal finances and businesses handling payroll.

The Standard Biweekly Schedule

A standard biweekly pay schedule means employees are paid every two weeks. This payment rhythm is widely adopted across U.S. industries. To calculate the typical number of pay periods, one divides the 52 weeks in a standard year by two weeks per pay period, resulting in 26 pay periods.

This consistent schedule provides employees with regular, predictable income. For employers, it offers a balanced approach to payroll administration, being less frequent than weekly payments but more consistent than monthly options. The 26 pay periods ensure that annual salaries are distributed evenly across the year.

The Occasional 27th Pay Period

While 26 biweekly pay periods are standard, some years include an additional 27th pay period. This occurs because a calendar year is not exactly 52 weeks long. A year has 365 days (52 weeks and one extra day), or 366 days in a leap year (adding two extra days).

These extra days accumulate over time. Each year, the leftover day (or two in a leap year) pushes the payroll calendar forward. Eventually, these fractional days add up to a full 14-day pay period, resulting in 27 biweekly paychecks. This event typically happens about once every 11 years, though exact timing varies based on the year’s start day and leap years. For instance, 2020 experienced a 27th pay period for many, with the next expected around 2031.

Managing the Extra Pay Period

The occurrence of a 27th biweekly pay period has implications for both employees and employers. For employees, a year with an extra paycheck can be an opportunity for financial planning. They might consider using the additional funds to boost savings, pay down debt, or cover unexpected expenses. Employees paid a fixed annual salary should note that their total annual earnings remain the same, but the per-paycheck amount may be slightly less for that year if the employer prorates the salary across 27 periods.

Employers must plan for this additional payroll run, especially concerning budgeting and deductions. For salaried employees, employers may choose to pay the same biweekly amount, effectively giving an additional paycheck and slightly increasing total compensation for that year. Alternatively, some employers might divide the annual salary by 27 instead of 26 for that year, resulting in slightly smaller individual paychecks but maintaining the exact annual salary. It is important to review how benefit deductions, such as health insurance premiums or 401(k) contributions, are handled to avoid over-collecting or exceeding annual limits. Clear communication with employees helps manage expectations and ensures transparency regarding pay adjustments or the extra paycheck.