Salary

It is wages and benefits that are paid over a period.

Money paid from an employer to an employee.

Usually paid monthly, fortnightly or weekly.

Wages and salary are both used to describe money paid to employees but they are different things.

Salary is quoted annually and maintains fairly consistent throughout the year.

Wages are paid as a reflection of an hourly rate multiplied by the hours worked.

Wages often change from week to week and a salary is fixed.

Both have advantages and disadvantages for the employer and the employee.

Knowing the difference between the two is vital to ensure that the correct payments are made or received.