Re: Wages & Salary

According to Labour laws there is no difference between wages and salary.
But as per accounting treatment difference is as follows:
Payment given to those employee who involved in direct manufacturing process (e.g. operator, foreman, supervision in factory, helper, etc) in factory workshop, called wages and payment given to those employee who don't involved in manufacturing process (e.g. accountant, cashier, office in-charge, HR department, etc) called salary.

Can anybody tell me anythng related to salay
what r break ups nd calculation
related to it

Hi shahibala
wages is a basic + da

salary is a gross amount.
but i am searching the same on google in the detils..
Whenever i will get it in details i will tell you.

Wages are the direct expenses which can be attributed directly to the manufacturing/trading/services provided, while working out the cost of the manufacturing/trading/services provided.
Whereas the Salaries are the indirect expenses and included in the overheads, while working out the selling price of the manufacturing/trading/services provided.
These differentiation has been made purely for the purpose of accounting, to show different expenses in the 'Manufacturing', 'Trading' and 'Profit and Loss' Accounts.