In the context of payroll and compensation, “3 pay period months” refer to a specific payroll schedule where employees are paid three times within a given calendar month. This is in contrast to the more common bi-weekly or semi-monthly pay schedules, where employees are paid twice or four times in a month, respectively.
The use of 3 pay period months can provide several benefits for both employers and employees. One advantage for employers is the reduced administrative burden associated with processing payroll three times per month instead of four times. Employees may also benefit from having a more consistent cash flow, as they will receive their paychecks at regular intervals throughout the month.
