Salary vs. Wages

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)


  • Wages (noun)

    plural of wage. It may take a singular verb. E.g. ‘the wages of sin is death’ (Romans 6:23 KJV)

  • Wages (noun)

    one’s total income for a time period

  • 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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