Wages is paid to the labor directly involved in production either receives money hourly, monthly, or weekly.

while salary is paid to the worker or staff related to administration and selling. wages becomes part of the product cost, while the salary treated as selling and administrative expense.

What is the Difference between Wage and Salary?

The following are some of the differences between Wage and Salary: Basis of Difference Time period of Payment Salary Wage It is generally paid on the basis of the number of weeks or a A wage is generally paid on month. It is also measured on hourly and daily basis the basis of a year Mostly it is a variable cost Mostly it is a fixed cost over a depending on the demand and period of time supply of the same Usually to the White Collar Usually paid to the laborers and Employees unskilled workers

Type of Cost To Whom they are Paid

It is important to understand the difference between wages and salaries. A wage is based on hours worked. Employees who receive a wage are often called "non-exempt." A salary is an amount paid for a particular job, regardless of hours worked, and these employees are called "exempt." I think this is wrong. When it comes to compensation, it means the cash-based payments to employees e.g salaries, bonuses, merit-based pay, variable pay (like performance-linked payments) etc while Remuneration is the sum total of all the rewards given to the employees both cash-based on or other non-cash benefits like health insurance, fitness and professional development subscriptions, wellness programmes, family support, child care, concierge services,

etc. Compensation= Cash payments only - salaries, bonus, variable pay Remuneration = Compensation + Benefits Implementation of National Floor Level Minimum Wage (NFLMW) In order to have a uniform wage structure and to reduce the disparity in minimum wages across the country, the concept of National Floor Level Minimum Wage (NFLMW) was mooted on the basis of the recommendations of the National Commission on Rural Labour (NCRL) in 1991. Keeping in view the recommendation of NCRL and taking into account the rise in price indices, the NFLMW was initially fixed at Rs.35/- per day in 1996. On the basis of increase in the Consumer Price Index (Industrial Worker), the Central Government has revised the NFLMW from time to time. The NFLMW was Rs.80/- w. e. f. 01.09.2007. The same was raised to Rs.100/- from 01.11.2009 and again raised to Rs.115/- with effect from 01.04.2011. Since NFLMW is a non-statutory measure, the Ministry of Labour & Employment has requested to all the States/UT Governments that in none of the scheduled employments, the minimum wages should be less than the NFLMW. At present, there is also a proposal to amend the Minimum Wages Act, 1948 to make the NFLMW statutory. ================= Type of wages The main types of wages are: 1. Subsistence wage; 2. Minimum wage; 3. Fair Wage; and 4. Living Wage Subsistence Wage: - The wage that can meet only bare physical needs of a worker and his family is called subsistence wage. Minimum Wage: - Minimum wage is the wage that is able to provide not only for bare physical needs but also for preservation of efficiency of worker plus some measure of education, health and other things. Fair Wage:- Fair wages is an adjustable step that moves up according to the capacity of the industry to pay, and the prevailing rates of wages in the area of industry. Living Wage:- Living wage is that which workers can maintain the health and decency, a measure of comfort and some insurance against the more important misfortune of lie. In any even the minimum wage must be paid irrespective of the extent of profits, the financial condition of the establishment or the availability of workmen at lower wages. The wages must be fair, i.e. sufficiently high to provide standard family with ,food, shelter, clothing, medical care and education of children appropriate to the workmen. A fair wage lies between the minimum wage and the living wage which is the goal. Wages must be paid on an industry wise and region basis having due regard to the financial capacity of the unit. attribution http://www.citehr.com/93596-type-wages.html#ixzz2b4zA2Ncc