Gross wages

Gross wages differ from gross income. They are similar in that, like gross income, they represent the total sum paid to an employee without tax deductions, however, wages are paid on an hourly basis based on a pre-agreed contract. They receive their gross wages via a paycheck, which has sums deducted for taxation purposes.

Wages differ from salaries in that they are paid monthly according to total hours worked, whereas salaries are calculated annually and then paid monthly. As such, gross wages can offer flexibility to employers however they make budgeting more complex.

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