To determine their salary according to the semi-monthly payroll system, a person needs to divide their annual salary by 24. For instance, if their annual salary equals ₹6,00,000, then they will get ₹25,000 per pay period. The benefit of this payroll system is that it allows salaried employees to calculate their salaries easily.

However, the number of days in each pay period varies depending on the month’s length. For instance, the second half of August will contain more working days than the second half of November. Therefore, it might cause difficulties when calculating overtime hours and hourly rates of compensation.

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