Salary and wages are used interchangeably as both refer to the remuneration. Although on a keener look into both this term tells that they are quite different to each other. The salary is the fixed amount that is given after a per pay period, it can either be on monthly basis or the yearly basis. The salary is the pre-fixed amount that depends upon the productivity and performance of an individual. With seeing the rise in the productivity level, the incentives are also paid in the salary, whereas the wages are the payment done on a daily basis on the basis of hours. In wages a certain amount for per hour is pre-fixed, and at the end of the day the wage earner is handed the payment, which depends on the number of hours given for that specific work.
What is Salary?
Salary is the pre-fixed amount that is given to the employees after the pay period. The pay period can be selected with the consent of both the office and employees will as it is seen that many of the workers prefer to have the amount paid on every 30th of the month as they have to pay their utility bills. On the other hand, many of the employees prefer to have the salary on an annual basis. The payment made on this basis mostly depends on the work provided to the organization. In most of the countries, the salary has the whole 12-month plan’ although equally distributed in the 12 months and at the end of the every month it is handed to the employee. There are many perks and privileges of working on the salary basis as there are paid holidays the extra-time than the committed time is also being paid. The salaried jobs are associated with the skilled and highly education as the employee hired through this process is generally for the white collar jobs. It should be kept mentioned that white collar jobs here refer to the job in the office or the administrative setting
What is Wages?
Wage is the payment given to the employee on a daily basis in accordance with the number of hours he/she has worked. With regards to the hourly payment method, the wage seems to be a little highly paid with terms to the salary based jobs. But at the same time it has the biggest con that it doesn’t offer any other perks and privileges and no paid holiday is also present in this type of remuneration. Most primarily the wage earner is designated on the ‘blue color jobs’ means the employees or workers in this are up with the manual labor tasks. Other than that, some of the highly paid freelancing jobs are also paid daily wages in accordance with the number of hours they consumed.
Salary vs. Wages
- The salary is the pre-fixed amount that depends upon the productivity and performance of an individual. With seeing the rise in the productivity level, the incentives are also paid in the salary, whereas the wages are the payment done on a daily basis on the basis of hours.
- For the salaried person there are other perks and privileges and paid holidays, whereas for the wage earner such concept is missing.
- The salaried person is skilled and educated people. Therefore they are designated on the white collar jobs, whereas the wage earner is unskilled or semiskilled there he/she is put to the labor tasks Blue Collar Job.
- For the salaried person, the incentives are given for the better work while in wage earner the extra payment for extra time is given which is quite a more than the normal pricing for an hour.