Hi Plz tell me what is diffrence between wages & salary,because our accounts deptt. want seprate salary & Wages figureThanksVinod
From India, Delhi
6From India, Delhi
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
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
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
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
SALARY WAGES
1. White color people 1. Blue color 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 with in 7th of next month after completion of 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
1. White color people 1. Blue color 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 with in 7th of next month after completion of 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
Dear Madhu Sir,
Is minimum wages act applicable for those who get salary? or is it only for worker? I mean to say as it is minimum "wages" act it related only to worker not to supervisor. Can we give less than minimum wages to supervisor or not??
Regards
Dinesh Kumar
From India, New Delhi
Is minimum wages act applicable for those who get salary? or is it only for worker? I mean to say as it is minimum "wages" act it related only to worker not to supervisor. Can we give less than minimum wages to supervisor or not??
Regards
Dinesh Kumar
From India, New Delhi
In Minimum Wages Act, the expression is "employee" and not worker and as such it should include all employees including supervisors and managers and that is why the minimum wages notification contains minimum rates of wages/ salary for supervisors/ foreman/ Managers as well.
Madhu.T.K
From India, Kannur
Madhu.T.K
From India, Kannur
Dear All,
Factory workers get Wages, it is direct expenses and it reflects in Trading Account.
Office workers get salary, it is indirect expenses and it reflects in Profit and Loss Account.
Regards
Virender Singh Gusain
ICA South Ex II
Student of Ms. Veenita Gupta
B0572325 - 8 AM 9.30 AM
(Group name : Veenita Madam's 8 AM Soldiers)
From India, New Delhi
Factory workers get Wages, it is direct expenses and it reflects in Trading Account.
Office workers get salary, it is indirect expenses and it reflects in Profit and Loss Account.
Regards
Virender Singh Gusain
ICA South Ex II
Student of Ms. Veenita Gupta
B0572325 - 8 AM 9.30 AM
(Group name : Veenita Madam's 8 AM Soldiers)
From India, New Delhi
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