Wages and Salary
Wages: Wages refers to an early rate of pay and is the pay basis used most frequently for production and maintenance employees (blue color workers). They are hourly or daily-based payment given to the labor for the amount of work finished in a day. Wage is termed as a compensation that is given on the basis of the amount of work done and the hours spent in doing that.
Salary: Salary is the money that someone is paid for their job each month, especially when they have professional another non-manual job. 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. The term salary is the agreed upon amount of money between the employer and the employee that is extended at regular intervals on the basis of an individual’s performance.
Salary refers to a weekly, monthly, yearly rate of pay, clerical professional, sales and management employees (white color workers) usually salaried. The vital dissimilarity between a salary and wages is that a salaried person is paid a fixed amount per pay period and a wage earner is paid by the hour. Someone who is paid a salary is paid a fixed amount in each pay period, with the total of these fixed payments over a full year summing to the amount of the salary.