Hi Plz tell me what is diffrence between wages & salary,because our accounts deptt. want seprate salary & Wages figureThanksVinod
From India, Delhi
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6From India, Delhi
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Legally there is hardly any difference between Wages and Salary. In fact, by whatever name called, any remuneration paid to an employee will be treated as 'salary' or 'wages'. However, separate treatment is needed in accounts to show the factory cost, cost of production and like. Therefore, remuneration paid to employees who are directly involved in production and whose services can be attributed directly to a cost centre are taken as 'wages' or labour cost (in Cost Sheet) and those remuneration, say amount paid to clerical staff, supervisors whose duty is to supervise a team of employees, managers etc are taken as 'salary' (included in administrative overhead). In final accounts the wages will be show as debited to Trading A/C whereas salary will be debited to Profit & Loss A/C.
There can also be a presumption that amount paid piece rated or on daily rated are treated as Wages and amount paid on monthly basis are treated as salary.
Similarly, wages may be variable, depending upon the unit of production and as such it will be a direct/ variabel cost whereas salary will be fixed and common for the entire units of production.
Moreover, the above classification will have bearing mainly in manufacturing units and not in service industry.
Regards,
Madhu.T.K
From India, Kannur
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There can also be a presumption that amount paid piece rated or on daily rated are treated as Wages and amount paid on monthly basis are treated as salary.
Similarly, wages may be variable, depending upon the unit of production and as such it will be a direct/ variabel cost whereas salary will be fixed and common for the entire units of production.
Moreover, the above classification will have bearing mainly in manufacturing units and not in service industry.
Regards,
Madhu.T.K
From India, Kannur
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Hi Vikas,
Wages as defined in payment of wages Act. Any remuneration capable of being expressed in terms of money.
Salary is moderate nomenclature of wages paid to white collar employees.
You never heard of Managers are paid wages or Clerks are paid wages. Wages are linked to worker or labourers perforing manual work.
Sawant
From Saudi Arabia
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Wages as defined in payment of wages Act. Any remuneration capable of being expressed in terms of money.
Salary is moderate nomenclature of wages paid to white collar employees.
You never heard of Managers are paid wages or Clerks are paid wages. Wages are linked to worker or labourers perforing manual work.
Sawant
From Saudi Arabia
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Salary Wages
1. White-collar people 1. Blue-collar people
2. No specific Act 2. Specified in Minimum Wages Act
3. Basically for Monthly rated people 3. Basically for Daily rated people
4. No specific payment date 4. To be paid within the 7th of the next month after the completion of the wage period
5. No mandatory register is required to maintain 5. Few mandatory registers are required to maintain as per law for inspection
Thanks
From India, Delhi
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1. White-collar people 1. Blue-collar people
2. No specific Act 2. Specified in Minimum Wages Act
3. Basically for Monthly rated people 3. Basically for Daily rated people
4. No specific payment date 4. To be paid within the 7th of the next month after the completion of the wage period
5. No mandatory register is required to maintain 5. Few mandatory registers are required to maintain as per law for inspection
Thanks
From India, Delhi
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Dear Madhu Sir,
Is the Minimum Wages Act applicable to those who receive a salary, or is it only for workers? I mean to say, as it is the Minimum "Wages" Act, is it related only to workers and not to supervisors? Can we pay supervisors less than the minimum wages or not?
Regards,
Dinesh Kumar
From India, New Delhi
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Is the Minimum Wages Act applicable to those who receive a salary, or is it only for workers? I mean to say, as it is the Minimum "Wages" Act, is it related only to workers and not to supervisors? Can we pay supervisors less than the minimum wages or not?
Regards,
Dinesh Kumar
From India, New Delhi
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In the Minimum Wages Act, the term is "employee" and not "worker." Therefore, it should encompass all employees, including supervisors and managers. This is why the minimum wages notification includes minimum wage rates for supervisors, foremen, and managers as well.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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Dear All,
Factory workers receive wages, which are direct expenses and are reflected in the Trading Account.
Office workers receive a salary, which is considered an indirect expense and is reflected in the Profit and Loss Account.
Regards,
Virender Singh Gusain
ICA South Ex II
Student of Ms. Veenita Gupta
B0572325 - 8 AM to 9:30 AM
(Group name: Veenita Madam's 8 AM Soldiers)
From India, New Delhi
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Factory workers receive wages, which are direct expenses and are reflected in the Trading Account.
Office workers receive a salary, which is considered an indirect expense and is reflected in the Profit and Loss Account.
Regards,
Virender Singh Gusain
ICA South Ex II
Student of Ms. Veenita Gupta
B0572325 - 8 AM to 9:30 AM
(Group name: Veenita Madam's 8 AM Soldiers)
From India, New Delhi
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