Certainly! Let's clarify the differences between "Wages" and "Salary" by matching the descriptions to their respective terms.
### Wages
- Definition: Employee compensation that is based on the number of hours worked multiplied by an hourly rate of pay.
- Example: Getting a pay of [tex]$15 an hour.
#### Explanation:
Wages are calculated by multiplying the number of hours worked by a fixed hourly rate. For instance, if an employee works 40 hours in a week and their hourly rate is $[/tex]15, they would earn 40 x [tex]$15 = $[/tex]600 for that week. This type of compensation is typically used for jobs where hours can vary week to week.
### Salary
- Definition: Employee compensation quoted on an annual basis.
- Example: Getting a salary of [tex]$120,000 per year.
#### Explanation:
A salary is a fixed annual amount agreed upon by the employer and employee, regardless of the number of hours worked each week. For instance, if an employee is offered a salary of $[/tex]120,000 per year, they will receive this amount spread out over the year in regular installments, regardless of the number of hours they actually work. This arrangement is commonly used for professionals, managers, and employees in roles where their presence and contributions are more important than the exact hours worked.
### Summary of Matching Descriptions:
1. Employee compensation that is based on the number of hours worked multiplied by an hourly rate of pay. (Wages)
- Example: Getting a pay of [tex]$15 an hour.
2. Employee compensation quoted on an annual basis. (Salary)
- Example: Getting a salary of $[/tex]120,000 per year.
By understanding these definitions and examples, we can clearly distinguish between wages and salary.
