Difference Between Salary and Wages
Definition of Salary
The term "salary" is the amount of money agreed between the employer and the employee that is extended at regular intervals based on the performance of an individual. The salary is generally a fixed amount of the package calculated on an annual basis. If divided by a number of months, the amount to be paid monthly is ascertained. The same is given to the employee based on his productivity.
An employee should work every day for certain fixed hours, but if sometimes the work is not finished in time the employee must devote his extra time without any additional remuneration. An employee is entitled to permits, benefits and benefits, ie the salary will be given if an employee took a leave and did not show up for the job.
It is usually said that wage-earners are doing "white-collar office jobs", which implies that an individual is well educated, qualified and employed in a certain company and has a good position in society.
Definition of wages
The salary is defined as a compensation that is given based on the amount of work done and the hours spent doing it. Wages are variable and vary with the daily functioning of an individual. Wages are given to jobs that are engaged in production processes and get compensation on a daily basis.
The work is paid on the basis of hours and in order to increase the pay, extra hours must be devoted to taking more. An individual is paid for his presence, not for his absence, that is, if a person does not come for work he will not be paid for that day.
It is said that the person declared is doing a "blue worker's job" which implies that an individual is engaged in unskilled or semi-skilled work and is drawing wages on a daily basis.
Differences between wages and salaries
Below are the main differences between salary and wages:
Definition of Salary
The term "salary" is the amount of money agreed between the employer and the employee that is extended at regular intervals based on the performance of an individual. The salary is generally a fixed amount of the package calculated on an annual basis. If divided by a number of months, the amount to be paid monthly is ascertained. The same is given to the employee based on his productivity.
An employee should work every day for certain fixed hours, but if sometimes the work is not finished in time the employee must devote his extra time without any additional remuneration. An employee is entitled to permits, benefits and benefits, ie the salary will be given if an employee took a leave and did not show up for the job.
It is usually said that wage-earners are doing "white-collar office jobs", which implies that an individual is well educated, qualified and employed in a certain company and has a good position in society.
Definition of wages
The salary is defined as a compensation that is given based on the amount of work done and the hours spent doing it. Wages are variable and vary with the daily functioning of an individual. Wages are given to jobs that are engaged in production processes and get compensation on a daily basis.
The work is paid on the basis of hours and in order to increase the pay, extra hours must be devoted to taking more. An individual is paid for his presence, not for his absence, that is, if a person does not come for work he will not be paid for that day.
It is said that the person declared is doing a "blue worker's job" which implies that an individual is engaged in unskilled or semi-skilled work and is drawing wages on a daily basis.
Differences between wages and salaries
Below are the main differences between salary and wages:
- Salary is the fixed amount of compensation that is paid for the execution of an employee. The salary is the variable amount of compensation that is paid based on the hours spent to finish a certain amount of work.
- The salary is awarded to qualified individuals who apply their skills in their respective sectors and generate revenues for the company. While the wages are paid to the semi-qualified or non-specialized worker as a carpenter, welder, electrician, etc. Who work on an hourly basis.
- In case of salary, the cost incurred is fixed, ie the fixed amount is paid monthly. While in wages, the cost is variable, because it can vary with the daily trend of an individual.
- The salary once decided, at the beginning, remains fixed for everything. While in the wage system there is a wage rate that continues to change and an individual is paid based on the prevailing wage rate.
- The salary is generally paid at fixed intervals, ie monthly. While salaries are paid on a daily basis for the number of hours spent.
- The salary is paid based on the performance of an individual. While salaries are paid on an hourly basis, ie the amount of work done in hours.
- The salary is paid to employees who have the skills and efficiencies to complete office work. While wages are paid to workers, who are engaged in production processes and do work on an hourly basis.
- The salary is given to those who are engaged in administrative or office work. Considering that wages are paid to those engaged in production processes that require unskilled or semi-skilled workers.
- A salaried person usually has KRA ie the resulting key area set for the month on which their performance is judged. While the salaried subject has no KRA and is judged on the basis of the hourly work done.
- No additional compensation is paid to employees for any extra hours. While the salary holder gets an additional pay for the extra hours he dedicates.
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