Definition of Salary
The term salary is defined as the remuneration paid to the clerical and managerial personnel employed on monthly or annual basis. Thus, salary is a fixed compensation paid by the employer to his employees for the provided services to the firm.
Definition of Wage
Wage is the payment for labour or services to workers especially remuneration on an hourly, daily or weekly basis or by the piece.
According to Benham, “Wage means the amount paid to the labour for his service to the employer“.
It is important to understand the difference between wages and salaries. A wage is based on hours worked. A salary is an amount paid by the employer by their employees on monthly basis or sometimes yearly basis.
The term salary and wages are often confused by people and is used interchangeably. But the truth is that both these terms differ from each other and hold different meanings. It is a fixed amount paid or transferred to the employees at regular intervals for their performance and productivity, at the end of the month whereas wages are hourly or daily-based payment given to the labour for the amount of work finished in a day.
The main difference between salary and wages lies in the fact that salary is fixed, i.e. it is predetermined and agreed between the employer and employee, while wages are not fixed, as it varies depending on the performance of the labour. This article presents you the important differences between salary and wages in tabular form.
Salary vs Wage
|1||The term salary is defined as the remuneration paid to the clerical and managerial personnel employed on monthly basis||Wage means the amount paid to the labour for his service to the employer.|
|2.||It is paid to the employees or office staff in organisation.||It is paid to the workers or labours n an organization.|
|3.||Salaries are paid to the employees on monthly or annual basis. But, still these two interchangeably.||Wages are paid based on the amount of work done as daily or weekly basis.|
|4.||Salaries are paid for administrative type of work||Wages are paid for manual type of work.|
|5.||It represents the monthly rate of pay.||Wage represent hourly rate of pay.|
|6.||There is no extra payment for extra work.||There may change to get extra earning for extra work.|