Wage

Wage is a fixed regular payment, typically paid on a daily or weekly basis, made by an employer to an employee, especially to a manual or unskilled worker. Wages are part of the expenses that are involved in running a business.

Definition

The term wage is used to describe the monetary compensation an employee receives in exchange for the work they perform. It is a form of income that is paid directly to an employee by their employer. Wages are typically based on a set amount per hour worked, and the employee's wage is calculated by multiplying the number of hours worked by the hourly rate.

Types of Wages

There are several types of wages, including:

• Minimum wage: This is the lowest wage that an employer can legally pay an employee. The minimum wage is set by government legislation and varies from country to country.
• Living wage: A living wage is a wage that is high enough to maintain a normal standard of living.
• Prevailing wage: This is the wage paid to the majority of workers within a specific area. Prevailing wages are often used in government contracting to ensure that companies pay their workers fairly.

Wage Determination

Wage determination is the process by which the pay for a job is decided. It can be influenced by several factors, including:

• The nature and complexity of the job
• The level of education and experience required
• The supply and demand of workers in the field
• The cost of living in the area
• The profitability of the company

Wage and Salary Comparison

While the terms wage and salary are often used interchangeably, they do have different meanings. A wage is a payment made to a worker based on the number of hours worked, while a salary is a fixed regular payment made to an employee, regardless of the number of hours worked.

See Also

• Income
• Minimum wage
• Living wage
• Salary