Wage facts for kids

A wage is money paid by an employer (a boss or company) to an employee (a worker) for the work they do. Think of it as your payment for a job. The amount can be set in different ways. Sometimes, it's a fixed amount for each task you complete. This is called a piece rate. Other times, it's based on how many hours you work or how much work you get done.

Work for wages is the most common way people earn money. Because of this, the word "wage" sometimes means any kind of payment to a worker. However, a wage is different from a salary or commission.

• A salary is when your employer pays you a set amount regularly. This could be every week or every month. You get this amount no matter how many hours you work. You also get it regardless of how much work you finish.
• Commission is usually an extra payment. It's based on how well you perform or how many products you sell.
• Workers who earn wages might also get "tips" directly from customers. They usually don't get the same benefits as salaried workers. These benefits can include annual leave (paid vacation) or sick leave (paid time off when you're ill).

How Wages Are Paid

Wages are most often paid by the hour. This is known as an hourly wage. For example, if you earn $10 an hour and work 5 hours, you get $50. Wages paid by the day are also still common in some jobs.

The amount of money people earn as wages can be affected by several things:

• Market forces: This means supply and demand. If many people want a certain job but there are few workers, wages might go up. If many people want a job and there are lots of workers, wages might go down.
• Laws: Many countries have laws that set a minimum wage. This is the lowest amount an employer can legally pay their workers per hour. Employers can pay more than the minimum wage, but not less. This law helps protect workers and ensures they earn a fair amount.
• Tradition: In some places, old customs and how society is set up can also affect wages. For example, in Japan, how long someone has worked at a company (their seniority) can play a big role in their pay.

History of Wages

People have been paid wages for their work for a very long time. We know that wages were paid in ancient times. This happened in the Middle Kingdom of Ancient Egypt. Wages were also common in Ancient Greece and Ancient Rome.

Images for kids

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  Historical graph of real wages in the US from 1964 to 2005.