Salary - What is it? characteristics, types, examples, and more

Salary - What is it? characteristics, types, examples, and more
Posted on 11-03-2022

Salary

Remuneration received by an employee for his working day.

What is the salary?

The salary is the remuneration that an employee receives for his workday, according to a form of payment previously stipulated in an employment contract. Anything that the worker receives in kind or money, for example, over time, premiums, bonuses, etc., is also considered part of the salary.

The concept of salary is frequently confused with the term salary. The difference between the two lies in the fact that the salary is remuneration given for a period worked, such as a week, a fortnight, or a month, while the salary refers to the remuneration for a day's work.

salary characteristics

The main characteristics of the salary are the following:

  • It is a direct consideration for the service provided.
  • It is the responsibility of the employer.
  • It cannot be for free. If the employer makes a gift to the employee, it cannot be considered a salary.
  • It is a personal income of the worker for his livelihood.
  • The minimum wage provided for by law must be guaranteed.

salary types

The types of salaries are classified according to the form of payment, the ability to acquire, and others.

According to the payment method

The salaries that are classified according to the form of payment are:

  • Salary per unit of work: the estimate of this salary is measured with the number of units worked and according to what is handled by the worker (boxes, packages, etc.).
  • Salary per unit of time: the estimate of this salary is measured with the time worked. It can be hours, days, weeks, or months.
  • Salary by task: the estimate of this salary is measured according to the fulfillment of certain specific activities, according to what is required by the employer. They can be activities such as repairing appliances, arranging plants, walking pets, etc.
  • Mixed salary: the estimate of this salary is established by combining those mentioned above and specifying, in the contract, from the form of payment to the times of completion.

According to the acquisition capacity

Salaries classified according to purchasing power are:

  • Real salary: the real salary corresponds to the hours, days agreed in the contract, or specific tasks, less what the person needs to live. This amount of money received decreases while the cost of living increases.
  • Nominal or contract salary: this salary is the total agreed between the worker and the boss at the time the contract is signed. It is also named income salary.

Other types of salary

Other types of salary can be:

  • Minimum wage: The minimum wage was established with the intention of protecting the worker. They are fixed periodically, trying to consider the increase in the cost of living and reduce labor exploitation with it.
  • Familysalary: the family salary varies according to the number of members and multiple factors, therefore it is established according to the regions of a country. It is considered that a family of 4 people represents this income very well, necessary to cover basic needs such as food, housing, and clothing.
  • Living wage: corresponds to the wage that is given to the worker as a subsistence wage, which is paid to him to maintain his "conditions" and to cover his basic expenses.

salary examples

The following are examples of salaries:

  • Hospital: Working an average of 40 hours per week, hospital employees can earn approximately the following salaries: general practitioners $2,000, nurses $1,000, cardiologists $4,000.
  • Bakery: in a bakery we can find, with a weekly average of 40 hours worked, the following salaries: kitchen employees $600 USD, cashier $550, cleaning assistant $400.
  • Commercial sector: The following table shows examples of salaries in a commercial company:

FASHION TEXTILES PAYROLL

The month of August.

NAME

POST

SALARY

Francisco

Manager

$5,000

Georgina

coordinator

$4,000

Stephanie

Saleswoman

$2,500

Edilson

Seller

$2,500

 

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