Understanding Wage vs. Salary: Is the Compensation Benefit Act the Key Difference?

The difference between wage and salary is a common question. Is the Compensation Benefit Act the only difference between wage and salary? Someone told me that individuals covered under the Compensation Benefit Act will receive wages, while others will receive salaries. Is that correct? Please provide me with the answer.

Hi Kalibindu,

The monthly payment made to the administrative staff, who have the power to make decisions and individual supervision over the working force, is termed as salary. The monthly payment made to all the floor workmen falls under the Workmen's Compensation Act and the Industrial Dispute Act, and is termed as wages.

Mohan Rao
Manager HR

Hi Bindu,

Wage: Payment for labor or services to a worker, especially remuneration on an hourly, daily, or weekly basis or by the piece.

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.

Hi, could anyone tell me the difference between Public Ltd. company and Private Ltd. company?

Regards,
Pushpendra

Hi,

When there is no mention of the word "private" in the company name, it is a public limited company. If the word "private" is included, then it is a private limited company.

Regards,
Harish Taneja

Hi,

In a Private Limited company, the promoters are the 100% investors of capital for the company, with no general public involvement.

In a Public Limited company, the promoters hold 51% of the shares in the total capital of the company, and the remaining 49% is obtained through the sale of shares to the general public. In this case, the public also becomes owners of the company.

Mohan Rao
Manager HR

Thank you, Mohan!

It means that the company is going to be a listed company and will release its shares to the public.

Regards,
Pushpendra

Hi,

Legally, there is no difference between salary and wages. Whatever money you are earning after working, you can call it by whatever name you are satisfied with. Just for self-satisfaction, we say it is salary or wages. Because changing just the name does not make any difference to any act.

V.K. Gupta

Remuneration paid to monthly-rated employees is called salary (i.e., they are paid for their weekly offs as well). Remuneration paid to daily-rated employees is called wages (i.e., these employees are not paid for their weekly offs).

Amit Pagedar can be contacted at amitpagedar@rediffmail.com for any clarification.

It is only the terminology difference between wage and salary. Anybody, including casual laborers, comes under the purview of the Workmen's Compensation Act.