Wages

Wages

Wages are a payment for the services of labour, whether intellectual or physical. Wage may be paid daily, weekly, fortnightly, monthly or yearly and partly at the end of the year in the form of bonus.

1. Meaning

Wage is the price paid to the labourer for the services rendered .

“A sum of money paid under contract by an employer to a worker for the services rendered”.

-Benham

2. Kinds of Wages

Wages are divided into four types:

i. Nominal Wages or Money Wages.

Nominal wages are referred to the wages paid in terms of money.

ii. Real Wages

Real wages are the wages paid in terms of goods and services. Hence, real wages are the purchasing power of money wages.

iii. Piece Wages

Wages that are paid on the basis of quantum of work done.

iv. Time Wages

Wages that are paid on the basis of the amount of time that the worker works.