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I used to get paid monthly at base salary of 48k. I have recently changed my job and getting paid fortnightly with a base salary of 50k

I did some calculation and found out that if I get paid monthly I would end taking home $2962.09. However, my take home pay is $1367.13. This does not add up I thought the for nightly should have been 1481$ 2962/2 = 1481?

I was paid 2864 monthly at 48k base salary, being paid 50k fortnight is less than 2864. im confused here.

The website that i used to calculate this is http://www.paye.net.nz/calculator.html

Here is the summary of my pay. Note, my kiwi saver is 4% and student loan is applied at 12%

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  • 1
    There are 12 months in a year but there are 26 fortnights. – Victor May 9 '14 at 13:10
  • Two things: 1) Fortnightly (bi-weekly in the US) paychecks make managing cash-flow somewhat more difficult, since most bills like rent and utilities are on a monthly schedule. 2) There will be 2 calendar months in which you will get 3 paychecks, rather than 2. If you can live on the typical 2 payments/month, you can use those 2 "bonus" payments for savings boosters (or vacation money :)). – Rick Goldstein May 9 '14 at 22:20
  • How many weeks are in a month? 4.3, this means there are 2.15 fortnights in a month, 4,166 / 2.15 ~ 1,930 – Jalapeno Jun 5 '18 at 14:23
15

A month is not four weeks, so your fortnightly pay is not half of your monthly pay. There are twelve months in a year but there are 52.18 weeks (allowing for leap years but not for the fact that 1900 and 2100 are not leap years). So your fortnightly pay should be (2 * 12/52.18) of your monthly pay, which would be $1362.44. In fact they've been slightly generous on the fortnightly pay calculation and assumed there are exactly 52 weeks in a year, so you're very slightly better off (around 0.3%) being paid fortnightly instead of monthly.

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