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This question is about salary vs wage.

Are salaries considered wages?

By Zippia Team - Dec. 7, 2022

Sometimes salaries are considered wages. Some laws and policies may use the term "wages" to refer to all compensation that employees are given, including hourly pay, commissions, and salaries.

Wages in this sense may also include:

  • Bonuses

  • Overtime

  • Vacation pay

  • Piece rate

  • Non-cash compensation

The term "wages" is commonly used for tax purposes, referring to the total amount of money businesses pay their employees in one form or another.

As far as pay structures go, though, salaries and wages are different. An employee who earns a salary earns a set amount of money each year, regardless of the number of hours they work, while an employee who earns wages is paid by the hour.

Are salaries considered wages?

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