Difference between salary and wages
abhijit majumder
(Querist) 03 March 2020
This query is : Resolved
to
Professional friends
Is there any clear cut demarcation between salary and wages.
In Income Tax act Salary include wages.However under payment of wages act and minimum wages act wages include any remuneration ...........
Department of labour when published minimum rate of wages for the workers in different classes of establishments it include "accounts maintenance" as a highly skilled works under Minimum wages Act..
now my query is that :
In a registered office of a Company where administrative works inter alia include "maintenance of Accounts," the person in charge of the accounts maintenance activities will fall under minimum wages act and get wages as per minimum wages act. Or get salary which may be outside the purview of the Minimum wages act.?
Abhijit Majumder
Raj Kumar Makkad
(Expert) 03 March 2020
Salary is a fixed amount paid or transferred to the employees at regular intervals for their performance and productivity, at the end of the month whereas wages are hourly or daily-based payment given to the labour for the amount of work finished in a day.
Raj Kumar Makkad
(Expert) 03 March 2020
The main difference between salary and wages lies in the fact that salary is fixed, i.e. it is predetermined and agreed between the employer and employee, while wages are not fixed, as it varies depending on the performance of the labour. This article presents you the important differences between salary and wages in tabular form.
Raj Kumar Makkad
(Expert) 03 March 2020
Following are the major differences between salary and wages:
Salary is the fixed amount of compensation which is paid for the performance of an employee. Wage is the variable amount of compensation which is paid on the basis of hours spent in finishing a certain amount of work.
Salary is given to the skilled persons who apply their proficiencies in respective fields and generate the revenues for the firm. Whereas wages are paid to the semi-skilled or unskilled worker such as carpenter, welder, electrician, etc. who work on hourly basis.
In the case of salary, the cost incurred is fixed i.e. fixed amount is paid monthly. Whereas in wages, the cost is variable, because it can vary with the day to day performance of an individual.
Salary once decided, in the beginning, remains fixed throughout. Whereas in wage system, there is a wage rate that keeps on changing and an individual is paid on the basis of prevailing wage rate.
Salary is generally paid at fixed intervals i.e. monthly. Whereas wages are paid on a daily basis for the number of hours spent.
Salary is paid on the basis of the performance of an individual. Whereas wages are paid on hourly basis i.e. the amount of work done in hours.
Salary is paid to employees who possess the skills and efficiencies in completing the office work. Whereas wages are paid to the labours, who are engaged in manufacturing processes and do the work on an hourly basis.
Salary is given to those who are engaged in administrative or office work job. Whereas wages are paid to those, who are engaged in manufacturing processes that require unskilled or semi-skilled workers.
A salaried person usually has KRA i.e. key resultant area set for the month on the basis of which their performance is judged. Whereas the waged person does not have any KRA and is judged on the basis of hourly work done.
Salaried persons are not paid additional compensation for any extra hours. Whereas wage holder does get an additional pay for the extra hours devoted by him.
Raj Kumar Makkad
(Expert) 03 March 2020
There is no straight jacket formula that the Accounts incharge of the company shall be paid salary or the wages but one thing is sure tha he cannot be paid below the minimum wages.
Dr J C Vashista
(Expert) 11 March 2020
Broadly salary is paid for white collar jobs governed by rules of the Organisation/ employer, whereas, wages are paid for blue collar (skilled/ semi-skilled/non-skilled) jobs governed by Minimum Wages Act (State subject) and Industrial Disputes Act.
T. Kalaiselvan, Advocate
(Expert) 21 March 2020
The essential difference between a salary and wages is that a salaried person is paid a fixed amount per pay period and a wage earner is paid by the hour. ... Someone who is paid wages receives a pay rate per hour, multiplied by the number of hours worked.
Minimum wage rates in India are fixed under the Minimum Wages Act, 1948. Since labour is a concurrent subject under the Indian Constitution, minimum wage rates are determined both by the Central Government and the Provincial Governments.
Wages are paid to the blue-collar workers who involve in technical, manual and more of a physical work.
Salary is the term which specifies the compensation paid to the employees of the organization in return for the contribution of an employee towards the organization. Salaries are paid to the white-collar employees, managers, professional, etc. The salaries are paid monthly or annual basis to the employees. The salary is fixed according to the qualifications, the ability of an employee to perform the job, experience, etc.
