Hi Plz tell me what is diffrence between wages & salary,because our accounts deptt. want seprate salary & Wages figureThanksVinod
From India, Delhi
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6From India, Delhi
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Legally, there is hardly any difference between wages and salary. In fact, by whatever name called, any remuneration paid to an employee will be treated as 'salary' or 'wages'. However, separate treatment is needed in accounts to show the factory cost, cost of production, and the like. Therefore, remuneration paid to employees who are directly involved in production and whose services can be attributed directly to a cost center are taken as 'wages' or labor cost (in Cost Sheet). Remuneration paid to clerical staff, supervisors, managers, etc., whose duty is to supervise a team of employees, are taken as 'salary' (included in administrative overhead). In final accounts, wages will be shown as debited to Trading A/C, whereas salary will be debited to Profit & Loss A/C.
There can also be a presumption that amounts paid piece-rate or on a daily basis are treated as wages, and amounts paid on a monthly basis are treated as salary. Similarly, wages may be variable, depending upon the unit of production, and as such, it will be a direct/variable cost, whereas salary will be fixed and common for the entire units of production. Moreover, the above classification will have a bearing mainly in manufacturing units and not in the service industry.
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Madhu.T.K
From India, Kannur
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There can also be a presumption that amounts paid piece-rate or on a daily basis are treated as wages, and amounts paid on a monthly basis are treated as salary. Similarly, wages may be variable, depending upon the unit of production, and as such, it will be a direct/variable cost, whereas salary will be fixed and common for the entire units of production. Moreover, the above classification will have a bearing mainly in manufacturing units and not in the service industry.
Regards,
Madhu.T.K
From India, Kannur
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Hi Vikas,
Wages, as defined in the Payment of Wages Act, refer to any remuneration capable of being expressed in terms of money. Salary is a more common term used for the wages paid to white-collar employees. You never hear of managers being paid wages or clerks being paid wages; wages are typically associated with workers or laborers performing manual work.
Sawant
From Saudi Arabia
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Wages, as defined in the Payment of Wages Act, refer to any remuneration capable of being expressed in terms of money. Salary is a more common term used for the wages paid to white-collar employees. You never hear of managers being paid wages or clerks being paid wages; wages are typically associated with workers or laborers performing manual work.
Sawant
From Saudi Arabia
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Salary Wages
1. White-collar people 1. Blue-collar people
2. No specific Act 2. Specified in Minimum Wages Act
3. Basically for Monthly rated people 3. Basically for Daily rated people
4. No specific payment date 4. To be paid within the 7th of the next month after the completion of the wage period
5. No mandatory register is required to maintain 5. Few mandatory registers are required to maintain as per law for inspection
Thanks
From India, Delhi
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1. White-collar people 1. Blue-collar people
2. No specific Act 2. Specified in Minimum Wages Act
3. Basically for Monthly rated people 3. Basically for Daily rated people
4. No specific payment date 4. To be paid within the 7th of the next month after the completion of the wage period
5. No mandatory register is required to maintain 5. Few mandatory registers are required to maintain as per law for inspection
Thanks
From India, Delhi
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Is the Minimum Wages Act applicable to those who receive a salary, or is it only for workers? I mean to say, as it is the Minimum "Wages" Act, is it related only to workers and not to supervisors? Can we pay supervisors less than the minimum wages or not?
Regards,
Dinesh Kumar
From India, New Delhi
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Regards,
Dinesh Kumar
From India, New Delhi
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