Weekly, Fortnightly or Monthly Pay

Lbalotelli14 on 29/05/2017 - 21:36

With the below. Does anyone know why i am taking home more pay if i get paid monthly as opposed to weekly or fortnightly. I used the tax calculator online to workout my pay for my new job.

The below is after tax. Why do i get more, when if i get paid monthly. for example, my weekly pay of $1,018.69 x 4 (weeks) = $4,072. but if i take my pay monthly it says my pay is $4,414.67 ? whys that ?

Hope it makes sense

2016 - 2017 Weekly Fortnightly Monthly Annually
Pay $1,018.69 $2,037.38 $4,414.67 $52,993.00

Financial

Comments

  • tanoshiiki on 29/05/2017 - 21:38
    +6

    There are usually more than 4 weeks in a month.

    It is more beneficial always to get paid quicker, i.e. weekly, especially if the amount goes straight into the offset or a savings account due to the time value of money.

  • tajid on 29/05/2017 - 21:43

    As what tanoshiiki said. It's just how it's quoted, you still get the same amount (ex interest).

    As you know most months are 30-31 days and therefore 3 days more than 4xweekly salary.

    I don't think you have the option whether to receive it weekly/fortnghtly/monthly etc, most likely company payment frequency is consistent for the whole company.

  • mskeggs on 29/05/2017 - 21:46
    +1

    If you get paid weekly you get 52 pays per year, or 26 if paid fortnightly. The 12 monthly pays needs to be higher to cover those extra 2 weeks of 29th, 30 and 31st days as tanoshiiki says.

    I get paid monthly, and this suits me now I am middle aged and most of my bills are monthly.
    When I was young and had poor cash flow, getting paid weekly or fortnightly was preferable, as I would find those occasional extra pay cycles would come around and give me what felt like an extra pay period as I had already covered the monthly bills.

  • [Deactivated] on 29/05/2017 - 21:52
    +2

    for monthly pay you get paid for 4.3337 weeks and not 4 weeks.

  • azvc on 29/05/2017 - 22:14

    For my work, the way we calculate fortnightly pay is: Annual Salary x 12 / 313 = Gross F/N income

  • balotelli14 on 29/05/2017 - 22:18

    Men i love you guys, thanks for the answer :)

  • juventino on 29/05/2017 - 23:29
    +4

    username checks out.. have you figured out how to wear the bib yet? hahaha

  • leoshleo on 30/05/2017 - 09:52

    The difference would be from payment cycle. I.e. if your weekly pay day is a Wednesday (31/05/2017), then you would be paid from wed-fri (24-26/05/2017) of one week and the mon-tue of the next week (29-30/05/2017). In a sense your being paid for work you did in the previous week, and you would accrue the difference between monthly pay in the following week, which would also lead into the next financial year as you end on week 30/06/2017.

    Sorry if its too much to understand, but basically it comes down to timing or easier as above, just factor in extra payment for a few extra days in the month. Neither payment cycle ie. weekly/fortnightly/monthly will affect your tax withholding from payments.

  • cupcake on 30/05/2017 - 10:21

    I prefer to be paid weekly. Straight into my account and off my home loan. That way I pay less interest in the year.

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