Wage is the payment as per the pay scale decided by the employer. Wage represents hourly-rate of pay while salary refers lo the monthly rate of pay, irrespective of the number of hours put in by an employer. Salary payment includes dearness and other approved allowances payable to employees. There is a provision of annual increment in the pay scale given to employees. Salary payment is made regularly on the specific day decided by the management. Salary payment is not uniform to all employees as it depends on the nature of the job responsibilities assigned, merits available, status of the post, and seniority of the employee and so on. Salary payment is now made attractive to all categories of workers. It constitutes major source of regular income to large majority of industrial and other categories of workers. Wages are now linked with the cost of living. The term ‘Take Home Pay’ is also used to indicate the quantum of money available to an employee after statutory deductions (income tax, P.F etc.) are made. This is actual payment available to an employee for use i.e., purchase of goods, services, etc.
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