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Wages are financial compensation that an employer pays to his employee for the contribution of the services, time and effort of the latter. Wages are most often paid in cash or cheque, though some companies that pay wages in the form of meals and other benefits.
Wages and Salary
When we say the term ‘wage’, it is often ambiguously assumed that it is similar to the term ‘salary’. Though both of them imply financial compensation for services rendered by an employee, there exist few differences between both terms:
- Wage is often paid per hour, day, week and month; salary is mostly paid every month in most countries
- Wage is paid ONLY for the number of hours worked; salary is paid for the entire month, assuming no losses of paydays from the side of an employee
- Wages include only cash benefit as per the contract; salary has many allowances, benefits, appreciations, and hikes involved
- An employee working as per wage contract is not eligible for any medical or insurance benefits or leaves from the employer; a salary holder has entitled all such benefits from the employer as per law
- A wage-based job has no security; a salary based job has security as defined by law
- Wages may or may not be subjected to taxes depending on the state laws; salaries are always taxable
Trade Unions and Wage Issues
As wages are mostly contract based, there were days when daily wagers had to struggle for their rights and fair wage rates. This led to the formation of trade unions that protected wage laborers and ensured that they got their fair wages and rights.
The origin of trade unions dates back to 18th century, which was the era of rapid industrialization. These trade unions played a key role in protecting the labor rights, preventing the employers from over-exploiting their workers, dealt with child labor issues and worked for reducing wage gaps between the male and female workers.
Let us understand this term “wage gap” which is often a topic of debate. Wage gap refers to the difference between the wages received between male and female workers for the same amount of work and duration.Women represent nearly two-thirds of minimum wage workers.
- Reports showcase that a female worker in the USA earns 78% to 82% of what a male worker earns. The statistics show a similar scenario in India too, where women are being paid 20% lesser than men. Top Wage Paying Countries
- Since jobs that pay wages are highly volatile, there are cases where wage workers demand much higher wage rates compared to an average salary based employee. Paying good wages is not charity at all. It is the best kind of business.
- If you are wondering where wages are paid the highest, take a look at the list below that shows the top five paying countries along with minimum wage rates per hour defined as per their laws:
- Australia ( USD 15 per hour)
- Luxembourg (USD 14.8 per hour)
- France (USD 12.6 per hour)
- Belgium (USD 11.9 per hour)
- New Zealand (USD 11.7 per hour)
- In India, the mean hourly wage rate is INR 42.16 – INR 36.04
- In the USA, it is USD 7.25 per hour
How to raise your wage rates?
Checking the above list, do you feel that you are being underpaid? No worries!
By following simple changes, you too can demand an increased wage rate:
- Gain expertise in your field and demand for more wage rate, or shift to a better paying employer
- Don’t hesitate during wage negotiations
- Opt for side income through freelancing, part-time jobs or side businesses.
How our Salary Calculator helps you?
With our salary calculator, you can easily calculate your salary or wage per hour, per day, per week, bi-week, semi month, per month, quarter and per year.
For this, you need to input the salary rates in your desired currency and the wage frequency (per hour, per day or per week how you would receive your wage) and number of working hours per week and working days per week.
Use our calculator and make you wage calculations simpler!