What is salary?

What is salary? It is a payment that you get for working. The payment is a fixed amount for a month or a year. Find out what you need to know about being paid with salary and wages.

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Types of payment

Some jobs have an hourly or weekly rate. The rate means the amount in dollars you get paid for an hour, a day, or a week.

Other jobs tell you the annual (every year) rate, or salary. You earn a set amount for a year. Usually, a job with an annual salary will pay you at the end of every two weeks or every month that you work. The paychecks will add up to the annual salary if you stay for one year.

How is a wage different from a salary?

A wage is payment by the hour. An hourly rate means you earn a set amount for each hour you work. This is often called “wages.”

There are other kinds of jobs where you get paid for finishing each job. For example, you might earn $50 for each article that you write.

How do I know my salary?

When you are offered a new job, you will learn about your payment. The employer will tell you how much you will be paid before you decide to accept the job. Or, you can ask at the company or ask people that you know. You can check to see what the average pay for your job and city is. You can also learn the minimum wage requirements in each state.

What changes salary?

1. Benefits

Sometimes, a full-time or part-time job will offer you other benefits as well your pay. The pay is important, but it is important to think about other things, too. Sometimes, higher pay can be worse than a lower pay if there are different benefits.

Other benefits include:

  • Health insurance: a job might help pay for health insurance for your or your family.
  • Retirement plans: a job might help you save money for retirement. You can save some of your paycheck into a retirement account. Some companies contribute, or add to, your retirement savings account.
  • Vacation and holiday pay: some jobs offer paid vacation, sick days, and holidays. These benefits vary a lot. Ask your employer if you earn paid days off. Other jobs might pay you more per hour if you work on holidays.

2. Skills and education

If a job requires more skills or advanced degrees, the salary is usually higher.

3. Demand

The demand for a job can also affect the pay. If there are a lot of open jobs, and companies have trouble hiring someone, the salary might be higher. If there are a lot of people who are looking for the job, then the salary will be lower.

4. Location

Your location can change the salary. Some cities and states are more expensive to live in. Those cities and state may pay more. Some cities and states are cheaper to live in. Those cities and states may pay less. Because you do not have to pay as much for rent, food, and other things, the different salaries between the two states might be more equal than they look.