In English, there are words that are translated into Russian the same way, but have different sounds and uses. Some of these words are salary and wage.
Salary and wage are translated into Russian as โsalaryโ. But these words are used in English in different ways.
What does salary mean?
Salary is a regular employee benefit that is paid monthly or annually, but is paid most often once a month.
The employee receives a fixed amount each month. His earnings are usually supplemented by paid holidays and holidays, medical insurance and other benefits.
Salary, as a rule, is determined by comparing those wages paid in similar positions in the same region and industry. Most large employers have salary and salary rates that are related to their position and length of service.
In most countries, salary is also influenced by supply and demand - how many vacancies exist for a particular position relative to the number of people who could hold that position.
What does wages mean?
Lower-level workers are paid depending on the amount of time worked. These employees usually have a time sheet. Most modern employers have computerized systems for tracking the hourly working time of employees, who must enter the system when starting work and exit at the end to mark their working hours. Wages are paid once a week or two.
Terms of use salary and wages
Let's move on to how to use these concepts. Now that it has become clear what the difference between salary and wage is, you should consider in which cases these definitions are used based on the following examples.
Wages is best associated with employee benefits based on the number of hours worked multiplied by the hourly wage rate. For example, an employee working in an assembly plant can work 40 hours during a work week.
If the hourly rate of this employee is $ 15, he will receive a salary with a gross salary of $ 600 ($ 40x15). If the employee worked only 30 hours during this week, his salary will show a gross salary of $ 450 ($ 30x15).
Salary is when a fixed amount is paid to an employee in each period. And the amount of these fixed payments for the full year is summed up with the amount of salary. This employee is considered a free employee because there is no connection between the amount paid and the number of hours worked. Usually salary gets one who is in a managerial or professional position.
For example, if a person has a salary of $ 52,000 and is paid once a week, then the total amount of each of the 52 salaries that he receives during the year is $ 1,000 (52,000/52 weeks). A person receiving a salary is not paid a smaller amount for working less hours, nor is he paid more for overtime work.
There is also a difference between salary and wage definitions regarding payment speed. If a person is paid salary, he is paid before and taking into account the payment date, since it is very easy for payroll personnel to calculate salary, which is a fixed rate. However, if a person is paid wages, he is likely to receive his salary five days after the period of work, since the salary should be calculated based on the actual time worked.
If a person is paid wages, and there is a gap between the last day worked and the date of payment, this gap is paid in his next salary. This gap does not exist for the employee, as he is paid before the payment date. Thus, in the financial statements of a company, it is much more likely to accrue wages for a person who is paid wages than for someone who is paid salary.