A wage is a form of compensation paid to employees for their employment services. They are typically paid hourly, daily, weekly, or monthly and calculated as a rate per hour, day, week, or month. Wages are usually paid in the form of cash or through direct deposit into a bank account.
You need to know both the hourly rate and the total number of working hours in order to calculate wages. To determine an employee’s gross pay, multiply the total hours worked by their hourly pay. To calculate the employee’s net pay, subtract any taxes and deductions from the gross pay.
Let’s take an example, if an employee worked 40 hours at an hourly rate of Rs 144, their wages would be 40 * Rs 144 = 5760
There are several frequency options in which wages can be paid, including weekly, bi-weekly, monthly, and semi-monthly. The payment frequency depends on the number of employees. A monthly payment is the most common payment frequency.
A wage is typically an hourly pay rate, whereas a salary is an annual sum of money given to an employee. They usually vary depending on the number of hours an employee works, while a salary is usually a fixed amount.