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Difference between Salary and Hourly

Difference between Salary and Hourly

When most people think of working they think of receiving a salary. A salary is typically an annual amount of money paid by an employer to an employee. However, there is another way to be compensated for work, and that is through hourly wages. Hourly wages are what you receive for every hour that you work. So, what’s the difference between a salary and hourly wage? Let’s take a closer look.

What is Salary?

Salary is a fixed amount of money paid to an employee by an employer in return for work performed.

  • Salary is typically paid on a monthly, biweekly, or weekly basis and is calculated by multiplying the number of hours worked per week by the employee’s hourly pay rate.
  • Salary is distinct from wages, which are generally paid based on the number of hours worked per week and may vary based on factors such as overtime or tips. Salary is also distinct from the commission, which is a variable payment based on sales or other performance-based criteria.
  • While salary may be used as a measure of an employee’s worth, it is important to consider other factors such as experience, education, and skill set when determining compensation.

What is Hourly?

Hourly is a website that allows businesses to post their open shifts and for workers to claim those shifts. This helps businesses fill their empty shifts quickly and efficiently. Hourly also offers a staffing solution for businesses that need help filling their schedule on a regular basis. With this service, businesses can request workers for specific shifts and Hourly will provide them with a pool of qualified candidates. This makes it easy for businesses to find the right worker for the job, and it helps to ensure that shifts are always filled. As a result, Hourly is an effective and convenient way for businesses to manage their staffing needs.

Difference between Salary and Hourly

Salary and hourly workers are the backbones of most organizations.

  • Salary employees are typical mid- to high-level managers, executives, or professionals, while hourly workers make up the majority of the workforce and are paid for the time they work. The most significant difference between salary and hourly workers is how they’re compensated.
  • Salary employees are paid a fixed amount regardless of how many hours they work, while hourly workers are paid based on the number of hours they work. Salary workers are also typically eligible for benefits such as health insurance and retirement plans, while hourly workers typically are not.
  • Another key difference is that salaried employees may be expected to work more than 40 hours per week, while hourly employees are usually only expected to work their scheduled hours.
  • Finally, salaried employees are typically exempt from overtime pay, while hourly employees are entitled to time-and-a-half pay for any hours worked over 40 in a week.

When deciding whether to hire a salary or hourly worker, organizations should consider the job requirements and the type of compensation that would be most appropriate for the position.


The difference between a salary and hourly wage is an important distinction to understand. Typically, salaried employees are paid a set amount each month, while hourly employees are paid for the number of hours they work. There are pros and cons to both arrangements, so it’s important to weigh the options carefully before making a decision.

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