The ABC Widget company paid its salaried employees each month 1/12 of their annual rate of pay. Then, on a month that began on a Sunday, they switched to paying them every other week 1/26 of their annual pay.

Alice said that works out worse for the employees, as in the first month, they'd get only 1/13 of their annual pay instead of 1/12.

Bob said "No, you're getting some of your money sooner by two weeks, more than making up for it, so that it's better for the employees."

Who is right?

I think it's better for the employee on a long term basis.

There are only 12 months in a year, whereas there can sometimes be 53 Sundays in a year (depending on leap years, it could be every 5/6 years). So in some years the employees would be paid 52 weeks wages; in others, 53.

Posted by sassy on 2005-01-02 17:30:08