Differentiate between Wage and Salary
The words wage and salary are sometimes considered synonymous strictly speaking however they have slightly different meaning. Wage refers to at an hourly rate of pay and is the pay basis used most frequently for production and maintenance employees. Salary refers to a weekly, monthly, or yearly rate of pay.
The difference between wage and salary defines more than how much you end up making per year. We use the terms to often describe differences in types of work, as well as what is actually counted in the final total. Differences between wages and salary are as follows:
- Salaries are generally paid for intellectual job and wages for functional or physical work.
- Wage earners are paid by the hours or days whereas salary earners are paid by generally in monthly.
- Salary earners usually receive paid time when they are networking. Wage earners often have to give up pay for time off.
- Salary is given to those who are engaged in administrative or office work job. Whereas wages are paid to those, who are engaged in manufacturing processes that require unskilled or semi-skilled workers.
- Salaries are often calculated as packages. Wage earners get paid more for working more than 40 hours per week.
- Salary workers are rarely offered overtime pay. Salaries can contain all kinds of benefits and perks.
- Salaried persons are not paid additional compensation for any extra hours. Whereas wage holder does get an additional payment for the extra hours devoted by him.
- Salary is paid on the basis of the performance of an individual. Whereas wages are paid on an hourly basis i.e. the amount of work done in hours.