What is the difference between a wage and a salary?

• Wages are paid on an hourly basis (usually to manual or non-skilled workers)

• Salaries are paid on a yearly basis (usually to office workers or management)

• Both usually receive their money monthly

Financial methods of motivation

• Bonuses• Commission• Profit sharing• Piece work• Overtime

Non-financial methods of motivation

• fringe benefits• job rotation• team working• status• consultation• job sharing

• What is the difference between and wages and a salary?– Wages are paid weekly or monthly, usually to

manual worker who are paid either an hourly rate or a piece rate; Salary is a fixed amount paid every month, usually to management or office staff, your salary is a yearly amount that is divided into 12 equal chunks.

• What does the payroll department do?– Payroll the department that works out how

much each worker is to be paid.

Remuneration

Payslip

• What is Gross Pay?Wages or salary before any deductions are made, not the amount of money you get to take home

• What is Net Pay?The amount of wages or salary left after all deductions. The amount paid into the employees bank account

Payslip Terminology

• What is National Insurance?National Insurance is a percentage of taxable income that is paid to the government by an employee. It is usually paid direct by the employer. You pay National Insurance contributions to build up your entitlement to certain state benefits, including the State Pension.

• What is Income Tax?The amount of tax paid to the government by an employee. Usually paid direct by the employer. A percentage of the taxable income.

• The difference?Income tax is paid on all income (e.g. from stocks and shares, interest etc.). NI is only paid on earnings and stops when you reach pension age.

Payslip Terminology

• What does BACS stand for?– Bank’s Automated Clearing System

• What is it?– A method of automatically transferring pay

into an employees account.

Payslip Terminology