Professional Documents
Culture Documents
Salaries and Wages
Salaries and Wages
EMPLOYEE COMPENSATION
Employee compensation refers to
the remuneration or reward that an
employee gets form his or her
employer for the services he or she
gives the latter
An employee, be it of a profit-making
entity or non-profit organization, is
paid something in return for his or her
services.
ARE WAGES AND
SALARY
DIFFERENT?
DIFFERENCE BETWEEN WAGE AND
SALARY
Wages is used where the amount of
money the employee receives may
vary from one pay period to the
next, as the amount paid is directly
dependent on the amount of hours
worked.
Salary refers to an agreed and fixed
annual amount of money the
employee receives regardless of the
hours worked.
WAGES
Basic pay in an employee’s
compensation package refers
to the wages or salaries they
get. Wages refer to the
earnings received by a
worker on a piece-rate,
hourly rate or daily rate.
PIECE RATE
A worker employed on a “piecework”
basis is paid in proportion to the quantity
of work he or she finishes.
Fixed piece-rate plan is the rate used that
is fixed irrespective of the quantity
produced.
Differential piece-work plan is the
increasing rate when the quantity
produced increases.
EXAMPLES
Tammy is paid on a per-piece basis at
the rate of 1.20 pesos per piece. If
she finishes 360 pieces a week, how
much is her total earnings?
Linda is employed to repack and seal pepper.
She is paid on the following differential pay
plan schedule:
Daily
Daily
rate/100
Quantity rate/100 Quantity
packs
packs
Monday -8 hours
Tuesday -10 hours
Wednesday -12 hours
Thursday -4 hours
Friday-10 hours
Saturday -8 hours
Sunday -4 hours
THANK
YOU!
Reporter: John Argie Betchaida