A pay period refers to the specific timeframe over which employee wages or salaries are calculated and paid by an employer. It is the duration for which employees' working hours and related compensation are recorded, summarized, and processed for payroll purposes. Pay periods can vary based on company policies, industry practices, and legal requirements.

Example
Suppose a company has a bi-weekly pay period, which means employees are paid every two weeks. If the pay period starts on Monday, January 1st, and ends on Sunday, January 14th, employees' work hours and relevant data during that period will be recorded. Payroll will then process and calculate the wages owed to each employee based on the recorded information. The payday could be on the following Friday, January 19th, when employees receive their pay for the two-week period.