Dear Members Can someone help me in knowing the exact difference between wage and salary. Regards Charles.P
25th September 2006 From India, Madras

Retail Management Trainee
Rajesh MBA MSW
Asst To Cs
+2 Others

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


25th September 2006 From Sri Lanka, Kolonnawa
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

7th April 2010 From India, Gurgaon
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
10th December 2012 From India, Madras
Dear Sirs,
When a Government Company engaging a professional (i.e., Company Secretary) on contract with approval of Board for one year contract period with a consolidated pay of Rs.50,000/- per month. Does he belongs to which category?(Contract Employee or Contract Labour) and his pay was wage or salary? In that pay of Rs.50,000/- how much the Company can deduct for TDS? Does he pay Professional Tax? please clarify me..
Thanks and Regards,
8th August 2017 From India, Salem
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