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A salary or wage is an amount that is paid by an employer to its employees for the time and work they have contributed to the company.
If we talk about salary, it is paid regularly and the amount is normally fixed irrespective of the quality or quantity of work performed. Salary is an annual figure that is determined in advance at the time of hiring employees through a contract that is usually renewed every year providing an increment to the employees depending on their performance.
Generally, people consider ‘wage’ and ‘salary’ the same thing; however there are technical differences between the two. Salary can be best explained as compensation given to employees on an annual basis while Wage is provided to the employees based on the number of hours worked multiplied by an hourly rate of pay. Wage-earners are non-exempt which means they get 1.5 times their pay for hours they have worked after exceeding 40 hours a week, basically known as overtime pay.
This benefit is generally not available for salaried employees but still, wage-earners are known to earn less than salaried employees.
For example, someone who works in a café gets ‘wage’ while a person who works in a professional setting in an office gets ‘salary’. So, salaried persons are often considered more reputable in society.
How to Calculate Salary/Wage per Month?
Most of the people are interested in knowing the right amount of salary or wage that they get per month or year without going through any huge calculations. And for that matter, they are going to need a monthly salary or wage calculator.
Usually, salaries and wages are calculated periodically such as monthly, semi-monthly, bi-weekly, weekly, etc.
The Salary Calculator is a tool that helps you calculate your monthly take-home salary after all the deductions. The amount calculated is the result of unadjusted and adjusted figures taking the vacation days and holidays into consideration.
Let’s see what other things go into calculating salary or wage.
Apart from getting salary and wages, employees also get some other financial benefits that don’t come in the form of a paycheck. Usually, salaried employees get more benefits as compared to wages workers. These miscellaneous benefits come in the form of employer-contributed healthcare insurance, employer-contributed retirement plans, payroll taxes, bonuses, company discounts, unemployment tax, paid holiday/vacation days, etc.,.
These benefits can be equivalent to a good amount in terms of money, hence people consider these benefits as well when they look for a job
Even if you are a self-employed contractor who gets paid as per their rates and that too hourly, daily, or weekly, etc. you can use this online salary calculator too. Although the contractors don’t get the extra benefits, their pay rates are higher than or equal to those getting salaries.
So, several factors have to be considered to calculate someone’s salary, wage, or pay rate for a month.
How to Use Online Salary Calculator to Determine your Salary or Wage?
The online salary calculator can help you calculate your monthly salary as well as what amount you are getting as a bonus from your company. There are so many things that go into calculating the Yearly CTC. This salary calculator will let you know your basic pay and amount of HRA, MA, and TA that you are getting per month. This is an annual salary calculator that will bifurcate your yearly salary so that you can know what amount of income you are going to take home from your current job. If you are looking for a monthly income calculator that calculates your gross pay, performance bonus, and other income using the monthly salary calculation formula. This net salary calculator is going to save a lot of time in doing all the complex and time-consuming calculations.