Salary vs. Allowance

By Jaxson

  • Salary

    A salary is a form of payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis.

    From the point of view of running a business, salary can also be viewed as the cost of acquiring and retaining human resources for running operations, and is then termed personnel expense or salary expense. In accounting, salaries are recorded in payroll accounts.

    Salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual salary.

    Salary is typically determined by comparing market pay rates for people performing similar work in similar industries in the same region. Salary is also determined by leveling the pay rates and salary ranges established by an individual employer. Salary is also affected by the number of people available to perform the specific job in the employer’s employment locale.

  • Salary (noun)

    A fixed amount of money paid to a worker, usually calculated on a monthly or annual basis, not hourly, as wages. Implies a degree of professionalism and/or autonomy.

  • Salary (verb)

    To pay on the basis of a period of a week or longer, especially to convert from another form of compensation.

  • Salary (adjective)


  • Allowance (noun)

    conceding, or admitting

  • Allowance (noun)


  • Allowance (noun)

    That which is allowed; a share or portion allotted or granted; a sum granted as a reimbursement, a bounty, or as appropriate for any purpose; a stated quantity

    “her meagre allowance of food or drink”

  • Allowance (noun)

    Abatement; deduction; the taking into account of mitigating circumstances

    “to make allowance for his naivety”

  • Allowance (noun)

    A customary deduction from the gross weight of goods, different in different countries

    “Tare and tret are examples of allowance.”

  • Allowance (noun)

    A child’s allowance; pocket money.

    “She gives her daughters each an allowance of thirty dollars a month.”

  • Allowance (noun)

    A permissible deviation in the fineness and weight of coins, owing to the difficulty in securing exact conformity to the standard prescribed by law.

  • Allowance (noun)

    approval; approbation

  • Allowance (noun)

    license; indulgence

  • Allowance (verb)

    To put upon a fixed allowance (especially of provisions and drink).

    “The captain was obliged to allowance his crew.”

  • Allowance (verb)

    To supply in a fixed and limited quantity.

    “Our provisions were allowanced.”

  • Salary (noun)

    a fixed regular payment, typically paid on a monthly basis but often expressed as an annual sum, made by an employer to an employee, especially a professional or white-collar worker

    “he received a salary of £24,000”

    “a 15 per cent salary increase”

  • Salary (verb)

    pay a salary to

    “the Chinese system—salary the doctor and stop his pay when you get ill”

Oxford Dictionary

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