A salary is the regular payment by an employer to an employee for employment that is expressed either monthly or annually, but is paid most commonly on a monthly basis, especially to white collar workers, managers, directors and professionals. These considerations employ women for some roles and only men for some roles, but because of the difference in the capacity to work the pay or wages differ accordingly, creating wage/salary differentiations. xv. Salary differentials are pay increases granted to teachers for credits earned beyond a bachelor's degree, including through CLEP exams. I want to live in. iv. differences in skills, training and responsibilities between occupations (for example, doctors are paid more than nurses, managers more than factory operatives); differences in regional employment levels reflecting differences in the supply and demand for labour in particular localities, with pay in prosperous areas generally being higher than pay in depressed areas. This article presents you the important differences between salary and wages in tabular form. Occupational differentials are based on skill, experience and training taken by the employees. Nature of the organization – The pay packages may vary because of the nature of the organization, whether it is using a Hi-Tech process, manual process, automatic process, erecting or fabrication, repairing or machining shop, process industry, service industry, software or IT industry etc. Broadbanding pay structures in HR consolidate the many grades found in a traditional salary structure into a few larger salary bands. Example sentences with "internal salary differential", translation memory. The entry-level wage or salary needs a rise when the employee gains experience in doing that job, develops expertise and can improve the quality and productivity. Other pedagogues or administrative titles may also receive differentials and should refer to their contracts for details. Wage may differ in different types of employment, occupation, from industry to industry, between person to person in the same grade or level, from state to state or from country to country. Terms of Service 7. They are the pay differences for the same kind of input. Factors Influencing 4. Know the difference between basic salary, take-home salary, gross salary and CTC? The availability of manpower or the supply to demand ratio is another factor for regional wage differentials. Nature of the role and responsibilities required, xi. It is found that wage differentials giving the wide differences in demand and supply of jobs along with wide variations in job requirement like skill, ability, knowledge and experiences so on, ensures full exploitation of the national resources and thus is justified. iii. Content Guidelines 2. See COLLECTIVE BARGAINING, COMPARABILITY, INFLATION. The main difference between salary and wages lies in the fact that salary is fixed, i.e. Wages were 5.7% higher than a year earlier. Maintenance of differentials is believed to foster poor INDUSTRIAL RELATIONS and encourage inflationary wage spirals; as one group wins a pay increase so another seeks a similar one to maintain the differential. Physical and mental ability of employee, ii. internal salary differential in English translation and definition "internal salary differential", Dictionary English-English online. Copyright 10. iv. Inter industries differentials generally arise due to the extent of unionization, their bargaining strengths, structure of the product market, the employer’s ability to pay and the stage of development of the industries paying a higher pay to expedite production. It enables full employment of the resources of the economy to be attained. This can also be a location differential where a company assigns a base value for a job ($30K is the base), and because of cost of living, someone in Seattle might make an additional 10% differential on top of the base due to the cost of living in that area. Wage or salary payment also varies according to the geographical, regional and state’s economic development stage or standard of life in the area such as: (a) Geographical based – The economy of the regions varies according to their geographical location and resource availability. i. Definition (1): Start-up firms are mainly of three types and salary-substitute firms are the first ones among them. Rural and urban differences – Cost of living, employment opportunities, variations in availability of infrastructural facilities like educational, medical and recreational result in wage differentials. This week, we’ll have a closer look at the concept of mean (= average ) and median. 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