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Difference Between Wages and Salary for South Africans?

Updated byWebdesk (Pretoria) Hours March 21, 2024

One of the best incentives for every person looking for a job is the payment that comes after the completion of work in the form of money. But most people find out about the types of payments after entering the job field or they don’t heed much attention to the difference between them.

If you were not aware, there is a major difference between wages and salary. No matter which part of the world you reside in, these two are different in multiple ways.

Difference Between Wages And Salary

If you wish to know about the differences between the two types of payments, in detail, then the article below will enlighten you. So, give it a thorough read!

What is Wage?

A wage is a type of monetary payment that is calculated based on the hours of work. The wage amount is not fixed as the employees receive this payment based on how many hours it took them to finish a job. If the wage is ZAR 20 per hour, then after 2 hours of work, the employee will get ZAR 40.

What is Salary?

A salary refers to the fixed amount of payment that the employee receives on a bi-weekly or monthly basis. The amount of salary depends upon different companies, the type of the job, the educational level of the employee, and their previous work experience.

Structure of Payment

The first difference that sets wages apart from salaries is the different structure of payment. Wages are paid to the employees on a daily basis, based on the number of hours they worked on the job. However, salaries are a pre-determined amount of money that is paid on a bi-weekly or a monthly basis and it does not depend upon the amount of work the employee finished.

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Relation of Time Input and Money

The second difference between the two types of payments is the relation between time input and money. In wages, the employees will earn more if they work overtime. The extra hours of input will get them more money, and similarly, if they reduce their work hours, their payment will decrease.

On the contrary, that is not the case with salary, as the amount of salary does not depend upon the time input. If the employee finishes their work in 5 hours instead of 6, they will still get paid the same amount. Similarly, if they put in 7 hours instead of 6, their payment will not increase and they will receive the pre-determined amount of money.

Terms of Agreement in Both

The third difference between the two types of payments is that wages are determined by the government, especially the minimum wage. If any employer does not meet that requirement, they can serve punishment for it.

However, the amount of salary is determined by the company. The employer and the employee do a discussion and then come to an agreement about the amount of monthly salary.

What is the difference between a wage, a salary, and a commission?

A wage is the amount of money a person receives depending upon their hours of work. A salary is a fixed amount that does not depend upon the time input of the employee, while a commission is the amount of money the employee gets based on their sales performance.

What is better wages or salaries?

In many situations, a salary is better than a wage. The employees get a fixed amount of money each month consistently.

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Can an employee switch from wages to a salary?

Yes, an employee can switch from wages to salary if they move higher up in the ranks. Wages are usually for part-time employees or seasonal staff. So, if an employee becomes permanent in any company, they can switch to salary.

Those who do not know what sets a wage apart from a salary need to move to the start of this article. For those of you who know all the differences between wages and salary, it will be easier for you to decide which one suits your needs the best. I hope the article above was helpful to you!

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Webdesk (Pretoria)

Web Desk of SASSALoans.co.za writes and deals with all updates related to financial news of South Africa.
The team is based in Pretoria and writers about various useful topics such as average salaries of various professions and skills of South Africa.

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Our Email: [email protected]
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