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Wage vs. Income: What's the Difference?

Edited by Sumera Saeed || By Huma Saeed || Published on November 11, 2023
Wage is payment for labor or services per unit of time, while income includes all earnings, like wages, investments, and benefits.

Key Differences

Wage is a specific term referring to compensation received for labor or services, usually calculated on an hourly, daily, or piecework basis. Income encompasses the broader concept of money received, typically over a period of time, and can include wages, salaries, bonuses, and earnings from investments.
Huma Saeed
Nov 11, 2023
Income represents the total financial gain from employment and other sources, such as investments or rental property, whereas wage is specifically the payment employees receive from working. Income can be consistent or varied, while wages are often regular and predictable payments.
Huma Saeed
Nov 11, 2023
Wages are earned from one's job or employment, directly correlating with the amount of time worked or tasks completed. In contrast, income includes all sorts of financial inflows, like dividends from stocks, which are not tied to active labor or time spent working.
Huma Saeed
Nov 11, 2023
Earning a wage is a form of income, but not all income is from wages; for example, a retiree might have an income from a pension without receiving a wage. The distinction is important for financial, legal, and taxation purposes, as different forms of income are taxed differently.
Aimie Carlson
Nov 11, 2023
Wages are often subject to minimum wage laws and are a crucial part of discussions about labor rights and standards. Income, on the other hand, may include passive earnings and is the broader measure used to assess wealth and economic status.
Aimie Carlson
Nov 11, 2023
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Comparison Chart

Definition

Payment for labor per unit of time
All earnings from various sources
Huma Saeed
Nov 11, 2023

Types

Hourly wage, salary, piecework
Wages, salaries, dividends, rent
Huma Saeed
Nov 11, 2023

Calculation

Based on hours worked or tasks completed
Sum of all monetary gains
Huma Saeed
Nov 11, 2023

Source

Employment or labor
Employment, investments, other sources
Janet White
Nov 11, 2023

Tax Consideration

Often subject to payroll taxes
Includes various tax considerations
Aimie Carlson
Nov 11, 2023
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Wage and Income Definitions

Wage

A fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee.
He received his weekly wage every Friday.
Janet White
Nov 10, 2023

Income

The sum of all the wages, salaries, profits, interest payments, rents, and other forms of earnings received.
His income puts him in the top tax bracket.
Harlon Moss
Nov 10, 2023

Wage

Earnings paid to a worker based on the number of hours or days worked.
For overtime, her wage was time and a half.
Harlon Moss
Nov 10, 2023

Income

The financial gain received by an individual or a household, encompassing various sources.
His annual income includes his salary plus earnings from his rental properties.
Harlon Moss
Nov 10, 2023

Wage

A salary or payment, often related to manual or skilled labor jobs.
As a carpenter, his wage was dependent on the contracts he secured.
Huma Saeed
Nov 10, 2023
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Income

The total amount of money earned or received by a person or group, typically over a year.
The household's income increased after both spouses got promotions.
Janet White
Nov 10, 2023

Wage

Payment to a worker for services rendered, often expressed hourly.
Her wage of $15 per hour was raised to $18 after a year.
Harlon Moss
Nov 10, 2023

Income

A flow of cash or cash-equivalents received from work (wage or salary), capital, or land.
With a steady job and wise investments, she enjoyed a comfortable income.
Harlon Moss
Nov 10, 2023

Wage

The monetary compensation paid by an employer to an employee in exchange for work done.
The company cut wages by 10% during the economic downturn.
Sumera Saeed
Nov 10, 2023

Income

The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as profit from financial investments.
Huma Saeed
Nov 02, 2023

Wage

A regular payment, usually on an hourly, daily, or weekly basis, made by an employer to an employee, especially for manual or unskilled work.
Huma Saeed
Nov 02, 2023

Income

The act of coming in; entrance.
Huma Saeed
Nov 02, 2023

Wage

Wages The price of labor in an economy.
Huma Saeed
Nov 02, 2023

Income

Money one earns by working or by capitalising on the work of others.
Huma Saeed
Nov 02, 2023

Wage

Often wages (used with a sing. or pl. verb) A fitting return; a recompense
The wages of sin.
Huma Saeed
Nov 02, 2023

Income

Money coming in to a fund, account, or policy.
Huma Saeed
Nov 02, 2023

Income

(obsolete) A coming in; arrival; entrance; introduction.
Huma Saeed
Nov 02, 2023

Income

A newcomer or arrival; an incomer.
Huma Saeed
Nov 02, 2023

Income

(obsolete) An entrance-fee.
Huma Saeed
Nov 02, 2023

Income

(archaic) A coming in as by influx or inspiration, hence, an inspired quality or characteristic, as courage or zeal; an inflowing principle.
Huma Saeed
Nov 02, 2023

Income

A disease or ailment without known or apparent cause, as distinguished from one induced by accident or contagion; an oncome.
Huma Saeed
Nov 02, 2023

Income

That which is taken into the body as food; the ingesta; sometimes restricted to the nutritive, or digestible, portion of the food.
Huma Saeed
Nov 02, 2023

Income

A coming in; entrance; admittance; ingress; infusion.
More abundant incomes of light and strength from God.
At mine income I louted low.
Huma Saeed
Nov 02, 2023

Income

That which is caused to enter; inspiration; influence; hence, courage or zeal imparted.
I would then make in and steepMy income in their blood.
Huma Saeed
Nov 02, 2023

Income

That gain which proceeds from labor, business, property, or capital of any kind, as the produce of a farm, the rent of houses, the proceeds of professional business, the profits of commerce or of occupation, or the interest of money or stock in funds, etc.; revenue; receipts; salary; especially, the annual receipts of a private person, or a corporation, from property; as, a large income.
No fields affordSo large an income to the village lord.
Huma Saeed
Nov 02, 2023

Income

That which is taken into the body as food; the ingesta; - sometimes restricted to the nutritive, or digestible, portion of the food. See Food. Opposed to output.
Huma Saeed
Nov 02, 2023

Income

The financial gain (earned or unearned) accruing over a given period of time
Huma Saeed
Nov 02, 2023

Income

Money that an individual or business receives in exchange for providing a good or service or through investing capital.
Her income from her investments supplemented her retirement fund.
Harlon Moss
Nov 10, 2023

FAQs

Can income include gifts?

Yes, income can include gifts, though they may be subject to different tax rules.
Janet White
Nov 11, 2023

Is salary the same as wage?

Salary is a fixed annual amount, often paid monthly, while wage is usually based on hours worked.
Huma Saeed
Nov 11, 2023

Are wages considered earned income?

Yes, wages are a form of earned income from employment.
Huma Saeed
Nov 11, 2023

Do wages include overtime pay?

Yes, wages include regular pay and any overtime pay earned.
Harlon Moss
Nov 11, 2023

What is minimum wage?

Minimum wage is the lowest legal wage that can be paid to workers.
Huma Saeed
Nov 11, 2023

Can loans be considered income?

Loans are not income since they have to be repaid; however, any forgiven part of a loan may be considered income.
Janet White
Nov 11, 2023

What is a wage?

Wage is the payment workers receive from employers, typically based on hours worked.
Huma Saeed
Nov 11, 2023

What is income?

Income is the total money received from various sources, including wages, investments, and other earnings.
Sumera Saeed
Nov 11, 2023

Is investment income the same as wage?

No, investment income is earned from investments, while wages are earned from employment.
Janet White
Nov 11, 2023

How do wages affect income?

Wages contribute to total income as one of its components.
Janet White
Nov 11, 2023

Is rent considered income?

Yes, rent is considered income when it is received by a landlord from a tenant.
Janet White
Nov 11, 2023

Are wages always paid in money?

Wages are typically paid in money, but sometimes can be compensated in other forms, such as with goods.
Harlon Moss
Nov 11, 2023

Can tips be considered a wage?

Tips are considered part of wages in many service jobs.
Janet White
Nov 11, 2023

Is a bonus a wage or income?

A bonus is considered part of your income and may be part of your wage if it's related to your employment.
Huma Saeed
Nov 11, 2023

What is passive income?

Passive income is money earned with little to no active effort, like rental income or dividends.
Janet White
Nov 11, 2023

How are wages taxed compared to other income?

Wages are subject to income tax and often payroll taxes, while other income types may have different tax rules.
Harlon Moss
Nov 11, 2023

Are dividends counted as income?

Yes, dividends from stocks are a form of income.
Aimie Carlson
Nov 11, 2023

Is Social Security income?

Yes, Social Security benefits are considered income.
Harlon Moss
Nov 11, 2023

Do all workers receive a wage?

Most workers receive a wage, but independent contractors and freelancers may earn income differently.
Janet White
Nov 11, 2023

Does income only come from working?

No, income can also come from non-working sources like investments or inheritance.
Aimie Carlson
Nov 11, 2023
About Author
Written by
Huma Saeed
Huma is a renowned researcher acclaimed for her innovative work in Difference Wiki. Her dedication has led to key breakthroughs, establishing her prominence in academia. Her contributions continually inspire and guide her field.
Edited by
Sumera Saeed
Sumera is an experienced content writer and editor with a niche in comparative analysis. At Diffeence Wiki, she crafts clear and unbiased comparisons to guide readers in making informed decisions. With a dedication to thorough research and quality, Sumera's work stands out in the digital realm. Off the clock, she enjoys reading and exploring diverse cultures.

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