Difference between wage and salary - job analysis.. CiteHR

tsmcharlesmba Started The Discussion:

Dear Members Can someone help me in knowing the exact difference between wage and salary. Regards Charles.P

Prof.Lakshman -  Member Since: Sep 2006
Dear Charles,

It is important to understand the difference between wages and salaries. A wage is based on hours worked. Employees who receive a wage are often called "non-exempt." A salary is an amount paid for a particular job, regardless of hours worked, and these employees are called "exempt."

The difference between the two is carefully defined by the type of position and the kinds of tasks that employees perform. In general, exempt employees include executives, administrative and professional employees, and others . These groups are not covered by minimum wage provisions. Non-exempt employees are covered by minimum wage as well as other provisions.

It is important to pay careful attention to these definitions when determining whether an individual is to receive a wage or a salary. Improper classification of a position can not only pose legal problems, but often results in employee dissatisfaction, especially if the employee believes that execution of the responsibilities and duties of the position warrant greater compensation than is currently awarded.

When setting the level of an employee's monetary compensation, several factors must be considered. First and foremost, wages must be set high enough to motivate and attract good employees. They must also be equitable—that is, the wage must accurately reflect the value of the labor performed.

In order to determine salaries or wages that are both equitable for employees and sustainable for companies, businesses must first make certain that they understand the responsibilities and requirements of the position under review. The next step is to review prevailing rates and classifications for similar jobs. This process requires research of the competitive rate for a particular job within a given geographical area.

Wage surveys can be helpful in defining wage and salary structures, but these should be undertaken by a professional (when possible) to achieve the most accurate results. In addition, professional wage surveys can sometimes be found through local employment bureaus or in the pages of trade publications. Job analysis not only helps to set wages and salaries, but ties into several other Human Resource functions such as hiring, training, and performance appraisal.

As the job is defined, a wage can be determined and the needs for hiring and training can be evaluated. The evaluation criteria for performance appraisal can also be constructed as the specific responsibilities of a position are defined.

Hope this has been of some help



tsmcharlesmba -  Member Since: May 2006
Dear Prof Lakshman, Thank you for your kind reply.It was indeed an indepth explanation and thanks for making my doubt clear. Regards Charles.P

Shehwar -  Member Since: Aug 2006
Hello Professor, That was some learning .... hope to hear more from you. Thanks ~Shehwar Thank you for

narendracitehr.com -  Member Since: Jun 2009
Dear All,

My Self Narendra Singh I am working in exports house in HR depatt but i have very losse in english language please tell me how can approve english write and speak please help me so i can not write the letter and not speak good english.


Narendra Singh

Originally Posted by tsmcharlesmba View Post
Dear Members
Can someone help me in knowing the exact difference between wage and salary.


SARASWATHI GOPAKUMAR -  Member Since: Jul 2011
Dear Lakshmanan Sir

Thank you very much for the explanation of Wages & Salary. Because most of the places in HR professinals are confusing what is it. But it is very clearly you explained.

Saraswathi Gopakumar

abutorsam007 -  Member Since: Mar 2008
Wages is best associated with employee compensation based on the number of hours worked multiplied by an hourly rate of pay. While Salary is best associated with employee compensation quoted on an annual basis.


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