A salary is a form of periodic 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 a 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 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.
A wage is monetary compensation (or remuneration) paid
by an employer to an employee in exchange for work done. Payment may be
calculated as a fixed amount for each task completed (a task wage or piece
rate), or at an hourly or daily rate, or based on an easily measured quantity
of work done.
Payment by wage contrasts with salaried work, in which the employer pays an
arranged amount at steady intervals (such as a week or month) regardless of
hours worked, with commission which conditions pay on individual performance,
and with compensation based on the performance of the company as a whole. Waged
employees may also receive tips or gratuity paid directly by clients and
employee benefits which are non-monetary forms of compensation. Since wage
labour is the predominant form of work, the term “wage” sometimes refers to all
forms (or all monetary forms) of employee compensation.
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