Wage

A wage is the remuneration paid to an employee, usually on an hourly or piece rate basis. Wages are one of the primary expenses of an organization, comprising an especially high proportion of total expenses in service-oriented firms. Wages are more likely to be paid for unskilled or manual labor. A wage differs from a salary in the following ways:

  • The total amount paid tends to vary, based on the number of hours worked, whereas a salary is a fixed amount, irrespective of the number of hours worked.
  • Wages tend to be paid more frequently than salaries, usually on a weekly basis.
  • Wages may be paid in cash, especially when wages are being paid on a daily basis or to temporary laborers.

Related Courses

Human Resources Guidebook 
Payroll Management