Even though the terms are sometimes used interchangeably, wages usually refer to hourly pay, whereas salaries refer to annual pay. Wages are calculated by counting the number of hours worked and multiplying it by an hourly rate, while salaries are calculated annually and divided by the number of payments received.
Continue ReadingFor example, to calculate the monthly wage of a person who earns $8.25 an hour and works 6 hours a day, 5 days a week, their wage is calculated $8.25 x 6 x 5. If the same person earns $35,000 a year and is paid semi-monthly, their salary is calculated by dividing $35,000 by 24.
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