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Payroll Transition General Information

Payroll Transition

How you are paid is changing by July 1, 2027. 

What’s changing? 

All employees will transition from a monthly pay schedule to a biweekly pay schedule, overtime eligible employees will get paid hourly instead of salary, and we will eliminate forecasting time.

Why we are making these changes? 

Our priority is ensuring every employee is paid accurately, on time, and in a way that’s easy to understand. Moving to a standardized biweekly schedule, paying overtime eligible employees hourly, and eliminating forecasting will help reduce errors and make pay clearer and more predictable. 

These changes will also help us remain fully compliant with state and federal laws.

All employees will move to a biweekly pay schedule. This means you will be paid every two weeks on Fridays with 26 paydays per year instead of 12. In rare years, 27 paydays may occur. 

This transition is not a reduction in compensation. Your total annual compensation will remain the same. It will be divided into 26 pay periods per year instead of 12.  

Most months have only two paydays, representing two weeks of work each. Two months each year will include three paydays. 

The change to a biweekly pay frequency begins by July 1, 2027. You will get paid on July 16, 2027, for hours reported worked July 1-3, 2027. You will receive your first full biweekly pay on July 30, 2027 for hours reported worked for the July 4-17, 2027 pay period. The payroll transition calendar shows all paydays for 2027. 

See our answers to your common questions for more detailed information.

Employees eligible for overtime under federal law, Fair Labor Standards Act (FLSA) Non-Exempt employees, who receive a monthly salary will move to hourly pay. This change helps us pay you faster and makes understanding your pay easier. Your overtime will be reflected accurately in each pay period based on the hours you have already worked.  

Employees who are not eligible for overtime under federal law, FLSA Exempt employees, will remain salaried. 

Your pay will be based on actual hours worked in the previous biweekly period, not projected hours.   

A lag period in payroll refers to the gap between the end of a pay period (when employees earn their wages) and the payday (when those wages are paid out). Forecasting in payroll refers to predicting or estimating future pay before the actual time is worked or submitted.  

When biweekly pay is implemented, the state will pay employees using a lag period of ten weekdays. For example, the first full biweekly pay period in 2027 will run from Sunday, July 4 to Saturday, July 17, and the actual hours worked during this period are paid out on Friday, July 30. The biweekly pay cycle calendar​ shows how a biweekly pay cycle will work for payroll processing. 

You will receive more reliable pay because overtime and shift differentials will be paid in the same period as the regular hours worked. This change will reduce errors and overpayments. You will be paid for the hours worked in the prior two-week period.

Resources for Employees

How and when you are paid is deeply personal, and the state of Oregon is committed to making this transition as smooth as possible.

We will provide resources, training, and dedicated support for you during the transition.

We are working with a number of advisory committees made of labor and agency management to advise on several aspects of the transition, including employee resources, support, and training.

Since pay will come every two weeks instead of once a month, you may need to adjust how you manage recurring bills and savings.

Employee Assistance Program

Because you are a state employee, you have access to unlimited, free and confidential financial coaching anytime through your benefits. You can access these Employee Assistance Programs (EAP) benefits through Canopy. For instruction on how to sign up for a Canopy account, visit the PEBB Wellness Programs website. These services can help you review your budget, adjust payment due dates and create a plan for managing your money under the new pay schedule. 

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We want to hear from you

Share your feedback.


If you are a represented employee, your labor organization’s advisory committee may have additional ways for you to provide feedback. The labor advisory committees are:  

  • Association of Engineering Employees (AEE) Structural Pay Changes Committee
  • Department of Corrections (DOC) Security Structural Pay Changes Committee
  • Department of Corrections (DOC) Security Plus Structural Pay Changes Committee 
  • Federation of Oregon Parole and Probation Officers (FOPPO) Structural Pay Changes Committee
  • Oregon Public Safety Association (OPSA) Structural Pay Changes Committee 
  • Oregon State Police Officers Association (OSPOA) Structural Pay Changes Committee 
  • American Federation of State, County & Municipal Employees (AFSCME) Central Table Structural Pay Changes Committee 
  • Association of Oregon Corrections Employees (AOCE) Structural Pay Changes Committee 
  • Criminal Investigators Association (CIA) Structural Pay Changes Committee 
  • Service Employees International Union (SEIU) Structural Pay Changes Committee 
Refer to your collective bargaining agreement for more information.