Definitions
- Referring to a fixed amount of money paid to an employee on a regular basis, usually monthly or annually. - Talking about the compensation for a professional job that requires specialized skills or education. - Describing the income earned by a salaried employee who is exempt from overtime pay.
- Referring to the hourly rate paid to an employee for their work. - Talking about the compensation for a job that does not require specialized skills or education. - Describing the income earned by an hourly employee who is eligible for overtime pay.
List of Similarities
- 1Both refer to payment for work done.
- 2Both are forms of compensation for employees.
- 3Both can be calculated on a weekly, monthly, or annual basis.
- 4Both can be subject to taxes and deductions.
- 5Both can be negotiated or adjusted based on performance or experience.
What is the difference?
- 1Frequency: Salary is paid on a regular basis, while wage is paid hourly or based on the number of hours worked.
- 2Eligibility: Salary is often associated with exempt employees who are not eligible for overtime pay, while wage is associated with non-exempt employees who are eligible for overtime pay.
- 3Skill level: Salary is often associated with professional jobs that require specialized skills or education, while wage is associated with jobs that do not require specialized skills or education.
- 4Stability: Salary is more stable and predictable than wage, which can vary based on the number of hours worked.
- 5Negotiation: Salary is often negotiated during the hiring process, while wage is often set by law or company policy.
Remember this!
Salary and wage both refer to payment for work done, but they differ in terms of frequency, eligibility, skill level, stability, and negotiation. Salary is a fixed amount paid on a regular basis to professional employees who are exempt from overtime pay, while wage is an hourly rate paid to non-professional employees who are eligible for overtime pay.
