How Employees Are Paid
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How Employees Are Paid
Getting out into the career world is a big step! If you are of high school age, you may have already started working. There are many ways to be paid for the work you do. They can differ depending on the type of industry you are in, your role, and the nature of the work.
Things To Know
- Benefits help to make a company more attractive to work for.
Wages. Wages are a set dollar amount paid per hour of work. Ideally, they will rise as you continue to work at your job and demonstrate proficiency and dedication. If you work more than 40 hours per week, you may be entitled to receive overtime pay, which is generally 1.5 times your wage.
Salaries. A salary is a fixed amount paid regularly, like weekly or monthly, regardless of how many hours you work. So if you work more than 40 hours a week, you don’t get overtime pay. But if you work fewer than 40 hours in a week, you still get the same pay. This type of pay is common in professional careers, such as those in management and teaching.
Benefits. Benefits are extras that supplement your pay. Examples include retirement plans, health insurance, vacation pay, free gym use, shares of stock, discounts on products or services, to name a few. Benefits help to make a company more attractive to work for.
Bonuses. A bonus is an extra payment given out. You might get a bonus for holidays, reaching performance goals, doing extra work, or when a company has extra profits.
Piecework. You may have mowed lawns, babysat, or made a project for a certain set pay amount, no matter how long it took you. This type of pay is called piecework. Artists and other independent contractors often work in this manner.
Commissions, fees, tips. A commission is a percentage of a completed transaction, such as the sale of a house by a real estate agent. A fee is a fixed payment made in exchange for a service given by a provider. Doctors, therapists, lawyers, and other professionals often charge them. Tips are additional amounts of money that service workers receive directly from customers as a reward for quality service. Common examples of tip-based jobs include restaurant workers, taxi drivers, and barbers. These workers often receive a lower base wage, with tips helping to supplement their earnings.
How many of these types of pay have you received?
As you go through the world of work, keep these different pay types in mind. They can influence the type of work you choose and whom you want to work for.
