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WHAT ARE THE DIFFERENCES BETWEEN SALARIES AND WAGES.

The term salary and wages are often confused by people and is used
interchangeably. but the truth is that both these terms differ from each other and
hold different meanings. Salary is a fixed amount paid to the employee at regular
intervals for their performance and productivity. whereas wages are the hourly
based payment given to the labor for the amount of work done and finished in a
day. To further enhance the understanding below are some of the basic difference
between salary and wages. the key differences are as follows.
Salary is a fixed pay that an individual draws for the work done by him
on annual basis. while wages are variable pay that an individual draws on the basis
of hours spent in completing a certain amount of work.
the skills required for a salary is skilled personnel while that of wage is
semi skilled or unskilled. and also the type of cost rate and rate of payment is fixed
with a fixed rate of payment. While that for wage is variable and the rate of
payment is wage rate.
the payment cycle monthly is daily for wage and monthly for salary. In
addition the basis of payment is performance basis for salary and hourly basis for
wage. Also salaries are been paid to employees while wages are usually paid to
labor.
The word salary is agreed upon an amount of money between the employer
and the employee that is extended at regular interval on the basis of an individual's
performance. it is usually fixed in amount of package calculated on annual basis.
when divided by the number of months, the amount to be disbursed monthly is
undertrained. the same is given to the employee on the basis of his productivity .
salarised person are generally said to be doing "white collar office jobs". which
implies that an individual is well educated, skilled and is employed with some firm
and also holds a good position in the society.

While wages are termed as a compensation that is given on the basis of

work done and the hours spent in the doing that. wages are variable and do vary
with day to day functioning of an individual. Generally wages are given to labors
who are engaged in manufacturing processes and get the compensation on daily
basis. generally the waged person are said to be "BLUE COLLAR -LABOR
JOBS" which implies that an individual is engaged in unskilled or semi skilled jobs
and also drawing wages on daily basis.