Why isn’t my fortnightly pay exactly half of my old monthly pay?
With the recent changes to our payroll cycle, you may wonder why your pay is not exactly half of your previous monthly pay. For some, this may cause financial issues as your regular spending pattern doesn’t quite fit after the changes. Here’s why:
- With monthly pay cycles you get paid 12 times a year.
- With fortnightly pay cycles you get paid 26 times a year (there are 26 fortnights in a full 52 week year).
- Fortnightly pay covers 28 days over two pay periods whereas monthly pay covers 30.4 days each month on average (30, 31 or 28/29 days depending on the month you are paid). This creates a small difference between two types of pay cycles. That’s the reason why your fortnightly pay is not exactly half of your monthly pay.
Does that mean I am getting paid less over a full year?
Not at all. Because there are 26 fortnights in a 12 month period (not 24 if your monthly pay was simply split in half), in two months each year you will receive a 3rd fortnightly pay.
When are the months that I will get paid three times?
This year March is the month where you will be paid three times, on the 2nd, 16th and 30th March. The only other month this will occur in 2022 is in August.
If the fortnightly pay cycle causes you financial hardship you may be eligible to cash out some or all of your annual leave depending on your leave balance. Please speak to your manager to discuss whether this is an option for you. If you have further questions, please do not hesitate contact the Finance Team via email at email@example.com
Please note that the Finance Team can’t assist you with any salary packaging enquires as this is managed by our service provider, Advantage Salary Packaging. Please contact their service desk on 1800 555 582 if you have any queries regarding your salary packaging arrangement.