Salary facts for kids
A salary is a regular payment a person receives for doing a job. Unlike getting paid by the hour, a salary is usually a fixed amount paid over a set time, like a month or a year. This means the payment stays the same, no matter how many hours are worked in a specific week.
Contents
What is a Salary?
A salary is a set amount of money an employer pays an employee for their work. It's often paid every two weeks or once a month. People who earn a salary are usually called "salaried employees." This type of payment is common for many professional jobs, like teachers, doctors, or office workers.
Salary vs. Wages
It's important to know the difference between a salary and wages.
- Salary: This is a fixed payment for a job, usually paid regularly (like monthly or bi-weekly). It doesn't change based on the number of hours worked. For example, a teacher might earn a salary of $50,000 per year, paid in equal amounts each month.
- Wages: This is money paid based on the number of hours worked or the amount of work completed. People who earn wages are often called "hourly employees." For instance, a cashier might earn $15 per hour. If they work 20 hours, they get $300. If they work 40 hours, they get $600.
Why Do Jobs Pay Salaries?
Many jobs pay salaries because the work isn't always about counting hours. For example, a project manager might need to work extra hours some weeks to finish a big project. Other weeks, they might work fewer hours. A salary ensures they get a steady income, and it encourages them to focus on getting the job done well, rather than just watching the clock.
Benefits of a Salary
Getting a salary often comes with several benefits:
- Steady Income: You know exactly how much money you will receive each pay period, which helps with budgeting.
- Predictability: It's easier to plan your finances when your income is consistent.
- Often Includes Benefits: Salaried positions often come with extra benefits like health insurance, paid time off (vacation and sick days), and retirement plans. These are valuable additions to the payment itself.
How Salaries Are Decided
Salaries are decided based on many things. These include:
- Job Responsibilities: How complex or important the job is.
- Skills and Experience: The specific abilities and past work history of the person.
- Education: The level of schooling or training required for the role.
- Industry Standards: What other companies pay for similar jobs.
- Company Size and Location: Larger companies or those in big cities might pay more.
Related pages
See also
In Spanish: Salario para niños
