Types of Pay

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Types of pay
Salary is a fixed amount of money or compensation paid to an employee by an
employer in return for work performed. Salary is paid, most frequently, in a
bi-weekly paycheck to an exempt or professional employee. In most years, an
employee's salary is paid in 26 even paychecks over the course of the year.
An employee who is paid a salary is expected to complete a whole job in
return for the salary. This is different from a non-exempt employee who is paid
an hourly rate or by the piece produced. This employee is generally eligible to
collect overtime.
The salaried employee or employee who is paid by salary does not track hours
worked and is not paid for overtime. (Some public sector, often union
represented, employees expect to account for hours and collect
compensatory time off. This is not the norm in the private sector.)
The definition of wages according to the Wages Act 1986 is any sums payable
to the employee by an employer in connection with that employment.
Therefore it includes fees, bonuses, commissions, holiday pay or other
emolument relevant to the employment whether specified in the contract of
employment or not. Wages also include SSP, SMP or company sick pay and any
other statutory payments e.g. payment for time off for trade union duties, jury
service etc.


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