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Difference Between Salary and Hourly

Salary vs Hourly

There are lots of things to consider when dealing with the types of compensation available. Contractors, employers, and companies pay their employees differently depending on the type, nature, and duration of the job. In this connection, the salary or salaried wage and the hourly wage systems have all taken effect in today’s modern society.

A salaried individual is someone who is receiving his wage that is based on a fixed yearly or monthly flat rate computation, the salary. If the annual salary is $30,000, this has to be further subdivided into the total number of paydays or pay periods that the worker will enjoy for the entire year. For most, a bi-monthly pay scheme gives this particular employee roughly $1,250 per pay period (per 15 days).

An employee paid by the hour is someone who is being remunerated by the hour. This means that if you are being paid with a rate of $10 per hour, you will receive $80 for 8 hours of work for a single day. Depending on the nature of the job and the level of expertise needed for work completion, hourly rates may vary. Nevertheless, most jobs that are paid by the hour coincide with the rates of those salaried employees if the latter’s wage is computed per hour.

So who is entitled to salaried work? Well, many agree that white-collar jobs mostly offer salaried employment. Professional workers like managers, supervisors, and regular office workers are usually exempted from overtime pay because they are allotted with a fixed salary. However, some employers give a little extra to those who work beyond their standard shifts. The computation for this extra income is usually regulated by the state’s labor codes. By contrast, hourly paid jobs are usually those that are only part-time or contractual in nature. Most manual labor workers receive this type of wage.

The salary wage system is good for those who usually end their work on time whereas the hourly pay system is best for those who work beyond their normal shift hours as it has the potential to generate more income.


1.The salary wage system is usually awarded to full-time and regular employees while the hourly pay wage is usually given to part-time or contractual manual laborers.
2.Salary wage workers are being paid with a fixed annual or monthly pay package. They are also usually overtime exempt.
3.Hourly paid employees are paid by the hour. If they work an extra set of hours, they will still be paid for those hours based on the agreed rate.

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