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Wages

What are the Wages?

The term Wages are another name of the monetary payment to the employees/workers in accordance with they give their input of work to the employer. Wages do not mean only the payment encashment or financials directly but the meals, lodging, and the like also are considered under the wage domain.   

Wages are the commissions, overtime worked payments, vacation pay, and alternative payments equal to financials like reasonable cash value things, tips payout, bonuses on the basis of any pay periods, or any other compensation in the form of remuneration.

What is the difference between Salary and Wages?

People often use wages and salary interchangeably though they are different terminologies. The wages are often paid per hour, per day, or weekly. Whereas the salary is paid monthly or calculated on yearly basis. 

Regularly the monthly payments and yearly payments are said to be salaries. For example, Linda earns $ 24, 000 per year, one may say her yearly salary is $ 24, 000 per year; instead, if someone says Lind earns $ 24, 000 as wage would look weird.  

A salaried employee is not eligible, in routine, for overtime as they are paid the fixed amount per month and that is calculated yearly. Whereas wage receiving employees get such benefit when they work more than 40 hours a week, the number of hours they input of workload carried and done, they get paid for accordingly. But this differs from state to state and country to country, at a global level. Local laws must be referred to for any such clarity.

 

How to calculate the wages?

Wages are calculated with a certain rate of pay against the time worked. Then the hourly rate is multiplied by the total number of hours invested into the work done. Hence the product is known as the total wages, per week if done for 40 hours like 8 hours a day into 5 days a week.

For example:

Michael earns $ 12 per hour, and he works 8 hours a day and five days a week, hence the data would be like this:

DATA:

Hourly wage               =         $ 12

Hours a day                =         8

Days per week            =         5

Hence:

Total Wage per Week     =    Hourly wage          X        Hours a day    X        Days per week

Total Wage per Week     =    12       X        8         X        5

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Michael’s total Wage        =         $ 480 per week       

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How Wages can be paid?

Wages can be paid in the following manner:

 

What you must know about the Wages?

It is pertinent to mention here about the wages that the employers must know that they are buying the skills and the time of the employees / of the workers / of the labor. Not only this but the education, knowledge, abilities, and the necessary relevant experiences, as well as expertise, are also bought by you to serve your business segment better than the alternatives available into the markets and the competition facing you and the company.


Related: Wage to Salary, Supplemental Wages