Understanding Salary vs. Wages: Do Minimum Wage Laws Apply to Salaried Employees?

Hello People, I work for a group of companies that has dairy, agriculture, and microfinance companies under one umbrella. I wanted to know the difference between salary and wages, and whether I need to follow the Minimum Wage Act for salaried employees as well. How are both treated under the law? Please suggest Acts and Laws to be referred to.

Thanks & Regards, Ankita.

To my knowledge, there is no differentiation in salary and wage in any of the labor laws. In many labor laws, there is a definition of wages as "wages shall have the same meaning as defined in the POW Act 1936." Salary is not defined except in the POB Act 1965 as "salary or wages means all remuneration (other than in respect of OT work)...".

Legal Definitions of Wages and Salary

To answer your question, you need to refer to the legal dictionary meaning of wages and salary, which is as follows:

- **Wages** mean payment for labor or services to a worker, especially remuneration on an hourly, daily, or weekly basis or by the piece rate.
- **Salary** means fixed compensation for services, paid to a person on a regular basis, often monthly for professional or office work as opposed to manual work.

I hope it is clear to you now the difference in wages and salary. You need to follow the Minimum Wage Act in both cases of wages as well as salary.

Regards.