ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Hourly employees are paid at a set hourly rate which is multiplied by the hours worked during a pay period. For example, if an employee’s hourly rate is $15 and they worked 20 hours during a pay period, you would multiply $15 by 20 to get a total wage of $300 for their paycheck.

Detailed explanation-2: -An hourly wage is the amount an employee is paid per hour they work. A role that’s paid hourly doesn’t come with a set or target annual pay. Instead, an employer pays an employee based on how many hours they work each pay period, which might be a week, two weeks, half a month or a month.

Detailed explanation-3: -An hourly employee is paid by the hour, meaning that their paycheque will be a summation of how many hours they have worked over a certain period. Conversely, a salaried employee is compensated a fixed amount, where the hours worked do not factor into the amount on their paycheque.

Detailed explanation-4: -The main difference between a salary and wage is that a salary is paid in fixed increments throughout a year, and a wage varies depending on the time or amount someone works. Salaries are an agreed amount per year and include holiday and sick day benefits.

Detailed explanation-5: -Someone is usually doing salaried hours work if all of the following apply: their contract states how many hours they must work in return for their salary (their basic hours) they’re paid in equal, regular instalments through the year, for example monthly or every 4 weeks.