HR Glossary / Salary VS Hourly

A salary is the total fixed amount of money paid to an employee over a given period of time, generally a year. In contrast, the hourly wage is the amount of money paid to an employee for every hour of work performed.


What Are the Benefits of Salary and Hourly Pay?

A salary earner is paid a fixed amount of money regardless of the number of work hours, meaning they will be paid whether or not they work. They will also not receive additional money to compensate for overtime, but can often bank those hours.

Hourly workers are only compensated for the number of hours they work. Their pay can also vary depending on their work hours. They received additional money to compensate for their overtime, which gives them the opportunity to earn more over the year.

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