Wages and salaries are the payment for work agreed between an employee and his or her employer under the contract of employment in the private sector and for contractual agents in the public service, or employment for civil servants.
Wages are a form of monetary compensation for employees. They are paid according to the amount of time worked by the employee.
Salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual salary.
Piece Wage: In this system of wage payment, remuneration is paid to the employees on the basis of unit produced or amount of work done. Unit of output produced or amount of work done is the basis of payment of wages.
Definition of wage (Entry 1 of 2) 1a : a payment usually of money for labor or services usually according to contract and on an hourly, daily, or piecework basis —often used in plural. b wages plural : the share of the national product attributable to labor as a factor in production.
Types of Wages:Piece Wages: Piece wages are the wages paid according to the work done by the worker. ... Time Wages: If the labourer is paid for his services according to time, it is called as time wages. ... Cash Wages: ADVERTISEMENTS: ... Wages in Kind: ... Contract Wages:
payroll (n.) also pay-roll, 1740, "a list of persons to be paid, with indication of the sums to which they are entitled," from pay (v.) + roll (n.). The meaning "total amount paid to employees over a period" is by 1898.
Typically, compensation refers to monetary payment given to an individual in exchange for their services. In the workplace, compensation is what is earned by employees. It includes salary or wages in addition to commission and any incentives or perks that come with the given employee's position.
Payroll is defined as the process of paying salary to a company's employees. It starts with preparing a list of employees to be paid and ends with recording those expenses. It's a tangled process that needs different teams such as payroll, HR and finance to work together.
There are two basic systems of wage payment—time rate system and piece rate system.
Definition of Salary Salary is associated with employee compensation quoted on an annual basis, such as $50,000 per year. Many employees working in a company's general office will be paid a salary. Often the salaries are paid semi-monthly.
A piece rate system is wherein the worker is paid a amount equal to the number of units he/she produces. For example if a worker is paid Rs. 20 per unit and the worker produces 10 units.
In general, wages are determined by supply and demand, but they can be influenced by a wide variety of factors, including the cost of living in a particular area, the presence of a union and the current minimum wage. Pay rates also vary by gender, race, education level and skill level of the workforce.
If you want to determine the gross wages per month, you will simply divide the employee's annual salary by 12. For example, if the employee makes $55,000 per year and you want to calculate a monthly gross wage, you would divide the total salary by 12. This equals out to a monthly gross wage of approximately $4,583.
(1) Every employer is responsible for the payment of all wages to all the employees that he employs. In any other case, if the employer names a person, or if there is a person responsible to the employer or is nominated, then such a person is responsible for the payment of wages.
The market forces that influence wages are the supply and demand for labor.