Hi this is Tutor Nick P and this is Lesson 606. The title of today's lesson is the difference
between wage and salary. Okay. If somebody wants a screenshot, do it right now. Let's get right to
it. Generally speaking, wages are usually paid per hour, per day or per week. Salaries are usually
paid per month or per year . All right. Let's continue. Salaried workers usually sign a contract
and are usually paid the same per month no matter if the month has 28 days 29 days ((30 days) or 31
days. So if there's an extra day or one less day they get the same pay no matter what. They're paid
by the month. All right. Let's continue. Salaried employees also tend to be for more professional
jobs. Okay people who work ...who are paid by the hour if asked to work overtime, he or she must
be paid for those hours. According to most laws in the US hourly paid employees will get time and a
half for any hours above 40 per week and will get double time if one works on a national holiday. So
for example, if somebody earned ten dollars an hour and they worked 41 hours that week.
So that one hour above the 40 therefore that last hour they would be paid 15 dollars . That would be
time and a half and if they worked on a national holiday and they normally got ten dollars,
they'll get twenty dollars per hour for every hour they work on that national holiday. Okay.
Let's continue. Salaried employees will usually not get extra pay if asked to work overtime.
That's why a lot of times they don't like it. In the office you know, if they're trying to escape
by five o'clock and the boss (says) "oh can you stay for a couple of hours ? " You know , can you
help me do this ? Again and they.... because they realize they're not going to get paid for that.
You know, most of the time no. I mean there could be an exception that some boss would be willing
to give them extra money, but normally no. Let's continue. Those that earn a salary are more likely
to get a bonus at the end of the year. Well maybe, this this varies a lot from company to company.
Some companies have no bonuses in the US. Some may and or it may depend upon how profitable a year
they had. What kind of bonus it may be. Do hourly workers get a bonus ? Usually not. Not unless
there's some deal cut with a with a labor union to get one, but usually not. Okay. Let's continue.
If you are a full-time employee and a member of a labor union, you will be covered for holidays.
Yes. Definitely. So if a holiday comes you'll be paid for that day., even though you don't
work that day. For sure. All right. And of course you know, if you're a salaried employee of course
you are too because it's the same per month anyway and you get the day off. With salaried employees,
the most important part is that you get all the work done that you are supposed to get done.
Okay. You will always hear hourly, wage daily wage, weekly. technically should be wage. However,
it's possible sometimes to hear weekly salary and you will always hear monthly
and annual salary. So so we never hear like our hourly salary. That would always be wrong
or daily salary that that that's unheard of. We don't hear that.
All right. Let's continue. A weekly salary may simply be an annual salary divided into 52
installments. Yeah. I was looking online they're talking about you know according to accounting,
sometimes they really have an annual salary and they just separate it into 52 different sections
and then that way you might still be able to refer to it as a weekly salary. So that's why there's a
little confusion between weekly but there's no confusion at all between hourly, daily,
monthly and yearly. All right. Let's continue. Wage earners usually have a time card and salaried
employees usually don't. Again, hourly salaries must because they have to count the hours.
Salaried I don't know maybe if there's a company and they're worried that too many people will try
to escape during the day. They don't but I mean... since the focus is on just getting your work
done that you're responsible for it may not be as important. So in most cases a lot of salaried
employees don't have time cards, but again that could vary if there was one company that
wanted to enforce that. Okay. All right just you know , of note even though most people
should realize this. I mean because sometimes we hear doctors and lawyers they charge per hour,
but that's not really a wage. It's more like a fee. So if a lawyer charged you know
500 per hour he's in a different category. That's more like a business or self-employed.
So that would be called... that's his fee. That's not really his wage just so something like that is
clear. All right. Let's continue. And we got five examples here to show just how it used.
All right. Here's the first one. He earns an hourly wage of fifteen dollars per hour. Yes. Of
course. Number two. Those dock workers earn a daily wage of 100 per day. Now in this particular case
if it were like that there's probably, it's probably a set amount of hours.
if they had to work overtime I don't know maybe they might choose to pay them a little bit more,
but usually they're paid on the day and they usually kind of cut it right at the time that the
workers are supposed to stop. Number three. His weekly wage is over five hundred dollars per week.
Okay. Good and she has a monthly salary of over four thousand dollars. So she earns at least four
thousand dollars per month. His annual salary is around 80 000 per year. Okay. Anyway, I hope you
got it. I hope it was clear. I hope it was very informative. Thank you for your time. Bye-bye.