When we work we earn a salary or a wage. A salary is associated with money earned at the end of a month. A wage is based with the compensation calculated according to the amount of hours worked multiplied to the hourly rate of pay. Generally, an employee would be paid at the end of a work week that follows hours worked.

*Example*:

A factory worker works 40 hours per work week. If the employee’s hourly rate of pay is $15.00, the weekly wage would be 40 hrs x $15.00 or $600.00. If the employee worked 30 hours, the weekly wage would be 30 hrs x $15.00 or $450.

Weekly wage can also be calculate by dividing yearly early earning by the amount of weeks in the year.

*Exercises*

Quizzes