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135 lines
4.7 KiB
HTML
135 lines
4.7 KiB
HTML
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<meta name="description" content="Wage or salary, what is the difference?">
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<h1 class="center">Pay (Wages, Salary)</h1>
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<p style="float:left; margin: 0 10px 5px 0;"><img src="images/money-hand.jpg" alt="money" height="66" width="150">
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</p><p>When you have a job you may get paid a wage or a salary.</p>
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<p>What are they?</p>
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<h2>Wage</h2>
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<p></p>
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<p>Wages are a payment for work based on hours worked (or sometimes per day or per amount of work done).</p>
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<p>It can be paid weekly, two-weekly, or monthly.</p>
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<div class="example">
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<h3>Example: Alex earns $20 per hour, and worked 40 hours last week so earned an $800 wage.</h3>
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</div>
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<p>Sometimes you get paid at a higher rate, such as</p>
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<ul>
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<li>when working "overtime" (time worked over the normal working hours)</li>
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<li>when working on weekends or holidays</li>
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</ul>
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<div class="example">
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<h3>Example: Alex worked 2 hours extra on Tuesday, and earned $30 per hour (overtime rate) for those two hours.</h3>
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<p>So, that week Alex earned an extra $60 and got paid $860</p>
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</div>
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<h2>Salary</h2>
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<p>Salary is payment for work based on a fixed amount per month or year. Usually paid weekly or monthly.</p>
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<div class="example">
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<h3>Example: Sandy has an annual salary of $120,000, which is paid weekly.</h3>
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<p>So Sandy gets about $2,300 per week.</p>
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<p>When you are paid a salary you usually don't get extra for overtime work, but you often get other benefits.</p>
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</div>
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<h2>Gross</h2>
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<p>The total amount is your <b>Gross Pay</b>, but we are not done yet!</p>
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<h2>Tax</h2>
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<p>No matter how you get paid, the government wants a share of it ... so that it can pay for social welfare, roads, the military and so on.</p>
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<p>The more you earn the more the government wants from you. The rate of tax increases for higher income people.</p>
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<p>The amount after tax is deducted is called <b>disposable income</b>.</p>
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<h2>Net</h2>
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<p style="float:right; margin: 0 0 5px 10px;"><img src="images/gross-net.svg" alt="gross vs net" title="gross vs net">
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</p>
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<p>As well as tax there can be other deductions! Money going towards your retirement, health insurance and so on.</p>
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<p>After all the deductions have been deducted you end up with your <b>net pay</b>: the amount you can actually spend. Wisely I hope.</p>
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<p></p>
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<p> </p>
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<div class="related">
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<a href="budget.html">Personal Budget</a>
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<a href="index.html">Money Index</a>
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