Income: Wage vs Salary

The difference between wage and salary defines more than how much you end up making per year. We use the terms to often describe differences in types of work, as well as what is actually counted in the final total.

Wages are generally paid per hour. This means that you have to be present and working in order to get paid. Most of the time, wage jobs are not as inclusive when it comes to things like paid vacations, or paid sick days. Wage earners often have to give up pay for leaving early, coming in late, missing a day, or taking a vacation.

A wage is better because you get paid for how many hours you work, while, with a salary, you get a set amount of payment. An example of a job that gets a salary is a teacher. It doesn't matter how much homework they grade over weekends and vacations, they get the same amount of money.

What a "Salary" looks like: $45,000 per year What a "Wage" looks like: $16.50 per hour So, basically, a Salary tells you how much you'll earn either in a month or a year. While a wage tells you how much you'll earn in an hour.

A Wage is, as mentioned, an amount paid per hour. A salary is a fixed amount of pay per week or month (usually paid semi-monthly). A yearly pay is known as an annual amount or annual pay. Other forms of income include piecerate and daily pay (such as for a taxicab driver). Unearned income are normally called benefits or pension benefits.

  Wage is payment received by an employee in exchange for labor. It may be in goods or services or food during the labor and its improvement. As per the old custom, the wage is decided as per the hardship of the work, for example, a mason $100, a carpenter $110, a helper $60, a supervisor $80, or so. Besides, when once paid, the relationship of the worker and employer is over. But salary, is the form of money only, i.e., is paid or regular basis such a weekly, monthly along with related insurance plan and retirement benefits and it is fixed on the basis of category / nature of work.

Salary refers to how much you get paid every year. Salary earners rarely have to punch a time clock, or keep an accurate account of their hours, because they get paid for performance rather than by the hour. Salaried workers are much more likely to have paid sick days and paid vacations, and are not docked pay for being late or leaving early from time to time.

Salary can also be counted in terms other than money. Some companies consider reimbursement for things like medical insurance as part of your salary. You can even find some companies blending education and retirement contributions as part of your salary package.

Salary is paid to "exempt" employees. These are people who do not have to account for the hours they put into the job; rather they are paid to get the job done. They still have to account for holidays, sick days and vacation days, just not the individual hours. Often they get bonuses or other incentives since these jobs are largely management, sales or project related. Wages are paid to "non-exempt" or "hourly" employees. These people account for their time on a time card or other record keeping system. Depending on the company, they may earn overtime for extra hours, or be expected to take time off to offset any late hours within the same time period. Usually the employee has to have worked a full 40 hour week to earn overtime. By the way, the employer does not have the right to amend a time card without employee permission/initial.

Historically, we often refer to manual labor jobs as wage jobs, and professional jobs as salaried positions. Wage earners are more likely to be found in positions with high turnover, while salaries are often assigned for positions with low turnover.

We express wages as an hourly payment. We express salary as packages. You might find that you receive a base salary, stock options, retirement, benefits, and bonuses as a salary package.

A person can get different wages in the same month depending on the work he does but a person can get only one fixed salary for a month. A person who earn wages has no fixed work whereas the person earning salary have a fixed post and a particular work schedule to do. Wage is paid only on the basis of the work done, irrespective of provision of work by the employer or not, but what the worker has carried out, whereas salary is paid every interval of week or month based on the schedule of work entrusted and not the work carried out. In terms of accounts, wages is direct expense and is included in trading account whereas salary is indirect expense and is included in profit and loss account.

If you are given the choose between the two and you know that the job is very time consuming then it is more wiser to take an hourly pay then a salary pay. You will make up for everything with the overtime hours put in.

Ex 4. Make up 10 questions to the text in ex. 26.

Ex 5. Explain the words in bold in ex.26.

Ex 6. Underline the correct item.

1. My father gets a wage/salary of £15,000 a year.

2. The perks/bonuses of this job include a company car and a mobile phone.

3. Please bring a copy of your CV/application form when you come for your interview.

4. If you want to appoint/apply for the job you should write to the company.

5. I was made fired/redundant when the company closed down.

6. He left his post/vacancy at the company when he was invited to work for another firm.

7. She is a(n) experienced/trained lawyer; she has worked for several law firms since she left university.

8. I am a full-time/part-time teacher - I only work twelve hours a week.

Ex 7. a) Compare and contrast the jobs of a farmer and a business executive. Think of the qualities and qualifications needed, the advantages and disadvantages of each (e.g. wage, salary, bonuses, perks, medical insurance etc.)

b)Which of the jobs would you prefer to do? Why? Discuss with our partner, then write a paragraph.

Writing

Ex 8. Write any of the following compositions using 120-180 words.

a) Your teacher has asked you to write a composition describing the person who has influenced your life the most. Write your composition.

b) Your teacher has asked you to write a composition describing a famous person from history whom you admire. Write your composition.