What's the Real Difference Between Salary and Wages? Seeking Clear Definitions

Hi, I am Neha from Faridabad. I am working as a personnel manager in a limited firm. I want to know the difference between salary and wages. I mean the definition of salary and wages. Kindly guide me.

Neha

Hi Neha,

Salary and wages are the same terms used in different circumstances. The workers who work are paid wages, and we as professional people get a salary. Basically, on a lighter note, people working physically are paid wages, and we who work mentally are paid a salary.

Hope it clarifies!!

Raiton Menezes :) :!: 😉

Salary is basically paid on a monthly basis. Wages are either daily-rated or piece-rate based (for calculation reasons only).

Kamlesh K

I have one query.

1) I would like to inquire about leave encashment for one of our staff members (Monthly rate). The basic rate is Rs. 5000/- and the PL balance is 30 days.

2) I would also like to inquire about leave encashment for one of our bargainable workers (Daily rate). The basic rate is Rs. 5000/- and the PL balance is 30 days.

Kindly guide me on how to calculate leave encashment.

Waiting for your reply.

From,
Sachin Dethe

What a "Salary" looks like: $45,000 per year.

What a "Wage" looks like: $16.50 per hour.

So basically, a salary tells you how much you'll earn either in a month or a year, while a wage tells you how much you'll earn in an hour (and a day, too? Not sure on this).

In my view, wages are paid to the labor directly involved in production, either receiving money hourly, monthly, or weekly, while a salary is paid to the worker or staff related to administration and selling. Wages become part of the product cost, while the salary is treated as a selling and administrative expense.