How to budget with 14 payslips a year

Work out your true monthly income

Suppose you receive €2,000 net across 14 payslips. Your yearly total is €28,000, which is €2,333 a month when divided by 12.

In the 12 regular months, €2,000 arrives. The other €333 a month is effectively paid to you later, in the two extra payslips.

Two ways to handle it

Budget on your regular payslip. Live on €2,000 and treat the two extra payslips as money for bigger plans. This is simple and leaves a clear cushion.

Budget on your true monthly income. Plan with €2,333 a month, and move money from your savings during the months before an extra payslip arrives. This shows the full picture, but needs some savings to begin with.

Decide now what the extra pay is for

1. Yearly bills, such as insurance or taxes
2. Your emergency fund
3. Holidays and gifts
4. Investing or extra debt payments

Give each extra payslip a plan before it arrives. Money without a job tends to disappear.

If your extra pay is spread across the year

Some people receive the same total divided into 12 equal payments. Check your payslip: if your extra pay is already included each month, budget on that amount and save for yearly bills yourself.

Common questions

Should I divide my salary by 12 or by 14?

Divide your yearly net pay by 12 for your true monthly income. The payslip amount shows what arrives in a normal month.

Does this also work with 13 payslips?

Yes. Add up all 13 payments and divide by 12.

Should I use my gross or net pay?

Use net pay, the amount that reaches your bank account.