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What Are the Differences Between Salaries and Wages?

What Is a Salary?

What Are Wages?

What is the Difference Between Wages and Salary?

Even though both salaries and wages are compensations earned for the work one does, they notably differentiate from each other.

The following table explains the difference between salaries and wages in more detail:




Skill set

Highly skilled

Typically semi-skilled or unskilled

Cost structure



Payment interval

Predetermined amount at fixed monthly interval

Daily or hourly, no fixed amount

Performance Reviewed

At fixed intervals

No performance review at regular intervals (workers with wages are usually labours)

Leaves Available

Fixed number of paid leaves

No structure followed for leaves available

Payment basis


Amount or hours of work done

Payment received by

Employees or "white collar workers."

Labourers or "blue-collar workers."

Advantages of a Salaried Job

Disadvantages of Having a Salaried Job

Advantages of Having Wages

Disadvantages of Having Wages

FAQs About Salaries and Wages