Salary vs. Hourly
Difference Between Salary and Hourly
When you work somewhere you get paid for the work you do. This payment is either made on the basis of the number of hours you work or you get a fixed salary at scheduled period. In both these system there may not be much difference in the amount that you are paid but these are two entirely different systems and differ from each other in terms of benefits and future prospects. You must know the difference in both these systems so that you know the profit and loss of both of these systems.
Here is the summary of differences between them:
- In the hourly wages system you get paid for the number of hours you work. So even if you are asked to work after the regular hours, you get paid for it. If you work on holidays then you get paid extra. In case if you are a salaried employee then you get a fixed salary irrespective of the number of hours you work. Some organizations may pay you for working overtime but that is also a fixed amount.
- When you are paid on hourly basis you are not entitled to benefits like medical or casual leaves and if you simply do not get paid when you do not work. In case of salary you get paid if you are on approved leaves as per the policy of the organization you work for.
- It is difficult to put fine on the hourly paid employees where as salaried staff can easily be fined in case of a mistake or a loss.
There are pros and cons of each system and you can choose any one system according to your preferences. If the working hours are more then you should prefer hourly wages because you can earn more money. A small example here may be helpful. If you see the teachers, they work so hard and handle so many tasks apart from teaching the students. They have to work long hours when they have to prepare question papers, do evaluation, prepare grades etc but they do not get paid any additional amount for doing this. They get their salary only. Here hourly wages system would have been beneficial to the teachers.