Dear Members Can someone help me in knowing the exact difference between wage and salary. Regards Charles.P
From India, Madras
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6From India, Madras
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Dear Charles,
It is important to understand the difference between wages and salaries. A wage is based on hours worked. Employees who receive a wage are often called "non-exempt." A salary is an amount paid for a particular job, regardless of hours worked, and these employees are called "exempt."
The difference between the two is carefully defined by the type of position and the kinds of tasks that employees perform. In general, exempt employees include executives, administrative and professional employees, and others . These groups are not covered by minimum wage provisions. Non-exempt employees are covered by minimum wage as well as other provisions.
It is important to pay careful attention to these definitions when determining whether an individual is to receive a wage or a salary. Improper classification of a position can not only pose legal problems, but often results in employee dissatisfaction, especially if the employee believes that execution of the responsibilities and duties of the position warrant greater compensation than is currently awarded.
When setting the level of an employee's monetary compensation, several factors must be considered. First and foremost, wages must be set high enough to motivate and attract good employees. They must also be equitable—that is, the wage must accurately reflect the value of the labor performed.
In order to determine salaries or wages that are both equitable for employees and sustainable for companies, businesses must first make certain that they understand the responsibilities and requirements of the position under review. The next step is to review prevailing rates and classifications for similar jobs. This process requires research of the competitive rate for a particular job within a given geographical area.
Wage surveys can be helpful in defining wage and salary structures, but these should be undertaken by a professional (when possible) to achieve the most accurate results. In addition, professional wage surveys can sometimes be found through local employment bureaus or in the pages of trade publications. Job analysis not only helps to set wages and salaries, but ties into several other Human Resource functions such as hiring, training, and performance appraisal.
As the job is defined, a wage can be determined and the needs for hiring and training can be evaluated. The evaluation criteria for performance appraisal can also be constructed as the specific responsibilities of a position are defined.
Hope this has been of some help
Cheers
Prof.Lakshman
From Sri Lanka, Kolonnawa
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It is important to understand the difference between wages and salaries. A wage is based on hours worked. Employees who receive a wage are often called "non-exempt." A salary is an amount paid for a particular job, regardless of hours worked, and these employees are called "exempt."
The difference between the two is carefully defined by the type of position and the kinds of tasks that employees perform. In general, exempt employees include executives, administrative and professional employees, and others . These groups are not covered by minimum wage provisions. Non-exempt employees are covered by minimum wage as well as other provisions.
It is important to pay careful attention to these definitions when determining whether an individual is to receive a wage or a salary. Improper classification of a position can not only pose legal problems, but often results in employee dissatisfaction, especially if the employee believes that execution of the responsibilities and duties of the position warrant greater compensation than is currently awarded.
When setting the level of an employee's monetary compensation, several factors must be considered. First and foremost, wages must be set high enough to motivate and attract good employees. They must also be equitable—that is, the wage must accurately reflect the value of the labor performed.
In order to determine salaries or wages that are both equitable for employees and sustainable for companies, businesses must first make certain that they understand the responsibilities and requirements of the position under review. The next step is to review prevailing rates and classifications for similar jobs. This process requires research of the competitive rate for a particular job within a given geographical area.
Wage surveys can be helpful in defining wage and salary structures, but these should be undertaken by a professional (when possible) to achieve the most accurate results. In addition, professional wage surveys can sometimes be found through local employment bureaus or in the pages of trade publications. Job analysis not only helps to set wages and salaries, but ties into several other Human Resource functions such as hiring, training, and performance appraisal.
As the job is defined, a wage can be determined and the needs for hiring and training can be evaluated. The evaluation criteria for performance appraisal can also be constructed as the specific responsibilities of a position are defined.
Hope this has been of some help
Cheers
Prof.Lakshman
From Sri Lanka, Kolonnawa
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Dear All,
My name is Narendra Singh, and I work in the exports department of an HR team. However, I face challenges in English language proficiency. I seek guidance on how to improve my English writing and speaking skills. Your assistance in enhancing my language abilities would be greatly appreciated, as I struggle to compose letters and communicate effectively in English.
Thank you,
Narendra Singh
From India, Gurgaon
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My name is Narendra Singh, and I work in the exports department of an HR team. However, I face challenges in English language proficiency. I seek guidance on how to improve my English writing and speaking skills. Your assistance in enhancing my language abilities would be greatly appreciated, as I struggle to compose letters and communicate effectively in English.
Thank you,
Narendra Singh
From India, Gurgaon
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Dear Lakshmanan Sir,
Thank you very much for the explanation of Wages & Salary. Many HR professionals find it confusing in most places, but you explained it very clearly.
Regards,
Saraswathi Gopakumar
From India, Madras
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Thank you very much for the explanation of Wages & Salary. Many HR professionals find it confusing in most places, but you explained it very clearly.
Regards,
Saraswathi Gopakumar
From India, Madras
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Dear Sirs,
When a government company engages a professional (i.e., a Company Secretary) on a contract with the approval of the Board for a one-year contract period with a consolidated pay of Rs.50,000/- per month, does he belong to which category? (Contract Employee or Contract Labour) Is his pay considered wage or salary? In that pay of Rs.50,000/-, how much can the company deduct for TDS? Does he need to pay Professional Tax? Please clarify for me.
Thanks and Regards,
RAJESH.S
From India, Salem
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When a government company engages a professional (i.e., a Company Secretary) on a contract with the approval of the Board for a one-year contract period with a consolidated pay of Rs.50,000/- per month, does he belong to which category? (Contract Employee or Contract Labour) Is his pay considered wage or salary? In that pay of Rs.50,000/-, how much can the company deduct for TDS? Does he need to pay Professional Tax? Please clarify for me.
Thanks and Regards,
RAJESH.S
From India, Salem
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Salary & Compensation Guidelines.zip
Salary & Wage .xls